BMW has lowered its full-year profitability forecast as the German car maker continues to face weak demand in China. The group, which is home to its namesake brand as well as the Mini and Rolls-Royce brands and a motorcycle business, said on Tuesday that sales volumes grew in Europe and the Americas in the first nine months of the year, but not in China.
The company said vehicle deliveries rose 8.8% globally to 588,300 units in the third quarter, with growth of 25% in the US and 9.3% in Europe, but a 0.4% decline in China. BMW said it was reducing its volume forecasts for the Chinese market in the fourth quarter.
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The company also mentioned that a reduction in commissions from Chinese banks to dealers for intermediating financial and insurance products for customers would weigh on profitability.
BMW expects pre-tax profits to decline slightly this year from 10.97 billion euros ($12.85 billion) in 2024. Meanwhile, free cash flow in its automotive segment is expected to be above 2.5 billion euros this year, compared with a previous estimate above 5 billion euros.
Mercedes-Benz Group yesterday reported a 12% drop in quarterly sales, blaming challenges in the Chinese market as well as the impact of US tariffs.
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BMW will publish third quarter results on November 5th. Source: Dow Jones Newswires.
*Content translated with the help of Artificial Intelligence, reviewed and edited by the Editorial Team BroadcastGrupo Estado’s real-time news system.
