Munich, August 1 – German luxury carmaker BMW reported a decline in profit for the second quarter, hit by higher production costs and weakening demand in its key Chinese market.
The company’s net profit fell by 8.6% year-on-year to €2.7 billion, while revenue dipped 0.7% to just under €37 billion. Vehicle deliveries declined by 1.3% to 618,743 units.
BMW attributed the decline primarily to a 4.7% drop in sales in China, citing increased competition and weaker consumer sentiment. The company expects the situation in the world’s largest car market to stabilize in the third quarter.
Higher manufacturing and personnel costs also impacted the company’s bottom line. However, there was a bright spot in the electric vehicle segment, where deliveries increased by 22% in the second quarter.
For the full year, BMW maintained its forecast for a slight increase in total deliveries, backed by sustained demand for premium vehicles and the launch of new models.
BMW Profit: Year-on-Year Comparison
| Year | Net Profit (in billion euros) | YoY Change (%) |
|---|---|---|
| 2023 (Q2) | 2.7 | -8.6 |
| 2022 (Q2) | 2.95 | |
| … | … | … |
