The automaker’s earnings decline reflects weaker demand in China and higher costs from trade barriers.
BMW reported a 25% drop in quarterly profit as softer demand in China and rising tariffs squeezed margins. The decline underscores challenges in its largest market, where economic growth has slowed and competition intensified.
Analysts had expected a smaller contraction, with prior-year earnings supported by stronger sales and lower input costs. The company also faces higher production expenses due to trade restrictions, particularly in the U.S. and Europe.
Shares showed limited reaction in early trading, as investors await further details on cost-cutting measures and regional performance.