BMW Group reported a significant drop in its earnings for the primary quarter of the yr, partially pushed by decrease demand in China.
The group additionally reported considerably rising EV gross sales and confirmed its 2025 monetary steering, citing expectations that total demand goes to rise in lots of markets this yr.
BMW Group’s internet revenue dropped by 26.4% to €2.17bn within the first three months of 2025 in comparison with the earlier yr.
The automotive phase’s margin was 6.9%, near the highest finish of the present steering and higher than anticipated by analysts.
Group revenues dropped by 7.8% to €33.75bn, primarily as a result of weak shopper demand and low value ranges in China. This was partially offset by strong development in Europe (+6.2%) and the Americas (+5.3%).
In whole, the group delivered a complete of 586,117 BMW, MINI and Rolls-Royce model automobiles to prospects between January and March, which was barely lower than within the earlier yr.
Greater than 1 / 4 of the delivered automobiles had been electrified (26.9%), and the variety of fully-electric automobiles delivered elevated by 32.4% year-on-year.
BMW Group confirmed full-year steering
Anticipating a rise in demand for premium automobiles, the BMW Group confirmed its steering for the yr, whereas its rivals, together with Mercedes-Benz and Ford have pulled their 2025 forecasts, largely as a result of uncertainty stemming from the US commerce tariffs.
The BMW Group already introduced in mid-March that it expects a €1bn hit to earnings from commerce tariffs. Now, they added that “the Group expects a few of the tariff will increase to be non permanent, with reductions from July 2025.”
BMW Group stated in its quarterly report that it “anticipates slight gross sales development, with fully-electric automobiles contributing to a barely greater share of deliveries.” The group earnings earlier than tax are anticipated to be on a par with the earlier yr and the EBIT margin for the Automotive Phase is forecast to be inside the vary of 5.0-7.0%.
Nevertheless, the report stated that “geopolitical developments and commerce tensions have now change into persistent sources of threat,” which might result in potential provide chain disruptions.
The higher-than-expected outcomes with a assured outlook boosted the group’s share value, which was up by greater than 3% at 11am CEST in Germany.