GreenergyDaily

Jun. 17, 2026

BMW warned that its automotive profit margin could fall to as low as 1% this year, down sharply from its previous guidance of up to 6%, as weakening demand in China, its largest market, continues to weigh on earnings.

The German luxury carmaker also announced additional cost-cutting measures beyond those unveiled earlier this year, though it did not specify whether the plans would include job reductions. The measures are expected to affect BMW's business in the second half.

Shares fell as much as 12%, their biggest intraday drop in nearly two years, after the surprise profit warning. The stock had already been down around 27% this year through Tuesday's close.

BMW's Chief Financial Officer Walter Mertl said on an investor call late Tuesday the company's March guidance was based on stable sales of roughly 50,000 vehicles a month in China through 2025 and into 2026.

By the first quarter, volumes were already down 10% from a year earlier, and the deterioration deepened in April and May, leaving sales through May 17.6% lower than a year earlier.