BMW expects tariffs and costs to drag down profits.

MaticHoleFiller · 2026-03-16T21:48:11+00:00

BMW expects its profit to decline this year due to tariffs, rising raw material costs, and increased competition in the Chinese market. The weakness in the used car market will also impact revenue. The group forecasts a moderate decrease in pre-tax profit over the next few years.

MaticHoleFiller

2026-03-16 21:48:11

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BMW> BMW expects profits to decline this year due to tariffs, rising raw material costs, and measures taken to stabilize its business in China, all of which will weaken margins.

Like most European automakers, BMW is facing fierce competition in China, where well-established domestic brands offer significant discounts to attract customers. Meanwhile, tariffs imposed by U.S. President Trump have increased costs across the industry, impacting profitability.

The German company, which owns the BMW, Mini, and Rolls-Royce brands, as well as a motorcycle division, said Thursday that its main automotive business will also be affected by a decline in revenue from the used car market, though cost-cutting measures will help offset some of these adverse effects.

The company stated that it expects sales in China to be roughly the same as last year but noted that the European and U.S. markets have overall growth potential. Global deliveries are expected to remain flat compared to last year.

The company said, “Given the expected developments, we anticipate a moderate decline in group pre-tax profit in 2026.”

BMW expects its automotive EBIT margin to be in the range of 4% to 6%, compared to 5.3% in 2025.

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