BERLIN (Reuters) – German automaker BMW’s profit margin increased in the third quarter after spending on research and development for a new all-electric line peaked, which the company says should boost growth amid stiff competition in China.
The results were a bright spot in another difficult quarter for European automakers, who face a new reality of high U.S. tariffs and cheap competition from China, with a looming chip supply crisis bringing even more uncertainty.
BMW beat market forecasts on Wednesday with an operating margin of 5.2% for its automotive unit in the July-September period, up from 2.3% recorded a year earlier when brake problems affected sales.
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The automaker’s shares rose around 2.4%.
Earnings before interest and taxes met forecasts of €2.3 billion, while revenues were slightly weaker than expected, reaching €32.3 billion.
After cutting its full-year forecasts last month due to tariff costs and slow growth in China, the group said it continues to expect an auto profit margin of between 5% and 6%, down from the 6.3% forecast for 2024.
The group expects the first model in the all-electric ‘Neue Klasse’ series to drive growth in 2026, adding that it has ‘transitioned’ last year’s record investment into its electric vehicle portfolio.
In Europe, orders for the iX3, the debut model in the new series, extend several months into 2026, Zipse said. Pricing for the model has not yet been set for the highly competitive Chinese market, he said.
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(Reporting by Rachel More)
