BUSINESS

BMW Cuts 2026 Profit Forecast as China Slump Deepens

Published: Jun. 18, 2026 4:02 p.m. GMT+8

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A BMW vehicle on display at the Beijing auto show on April 30. Photo: VCG

BMW Group has lowered its 2026 earnings forecast, warning of a significant drop in profit as weak demand in China and higher energy costs linked to the Middle East conflict weigh on earnings.

The downgrade highlights the mounting challenges facing traditional luxury automakers in China, the world’s largest car market, where a prolonged sales slowdown and intensifying competition from domestic electric-vehicle (EV) makers are squeezing margins and eroding market share.

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BMW lowered 2026 earnings forecast to "significant decrease" from "moderate decrease," citing weak China demand and higher energy costs from the Middle East conflict.
First-quarter global deliveries fell 3.5%; China deliveries dropped 10%; revenue fell 8.1%, pre-tax profit 24.6%.
China's auto market slowdown and price war pressured BMW; it cut prices up to 300,000 yuan amid competition from domestic EV makers.

AI generated, for reference only

BMW Group: BMW Group lowered its 2026 earnings forecast, citing weak Chinese demand and higher energy costs from the Middle East conflict. Pre-tax profit is expected to drop significantly, with sales declining, especially for non-electric vehicles. Intense competition from Chinese EV makers and a price war have eroded margins, damaging brand image.

Nio Inc.: Nio Inc. is a Chinese electric-vehicle maker mentioned in the article as one of the companies pressuring traditional luxury automakers like BMW. Nio, along with Li Auto and Xiaomi, is investing heavily in autonomous driving and smart features to gain market share in China's rapidly shifting auto market.

Li Auto Inc.: Li Auto Inc. is a Chinese electric vehicle maker mentioned in the article as competing with traditional luxury automakers like BMW. The company is ramping up investments in autonomous driving systems and smart features to gain market share in China's rapidly shifting EV market.

Xiaomi Corp.: Xiaomi Corp., a Chinese technology company, is investing heavily in autonomous driving and smart features for electric vehicles, competing with traditional luxury automakers like BMW in China's market.

AI generated, for reference only