BMW expects profit margins to remain under pressure this year due to tariffs and intensified competition.

格隆汇 March 12｜BMW Group expects that, due to tariff costs and intensified market competition, its profitability will remain roughly flat this year. The German manufacturer forecasts its automotive business profit margin to be between 4% and 6%, while last year's figure had already dropped to 5.3%. BMW stated on Thursday that sales in the Chinese market will remain generally stable. CEO Oliver Zipse has successfully maintained the robust operation of this luxury car company amid supply chain shortages and fluctuations in the transition to electric vehicles. Thanks to maintaining production line flexibility to manufacture models with different powertrains, BMW has consistently outperformed Mercedes-Benz Group and Audi under Volkswagen in the electric vehicle sector. Last year, BMW began production of the first model in its next-generation electric vehicle “Neue Klasse” series, which was developed with an investment of 10 billions euros. The company plans to launch a sedan from this series next week. This move aims to address competition from brands such as BYD, Tesla, and Xiaomi.