BMW’s profit has significantly decreased during the first half of the year, according to newly released figures. The automotive manufacturer reported a net profit of €4.015 billion, representing a 29% decline compared to the €5.656 billion recorded during the same period last year.
The downturn is reportedly attributable to the imposition of US tariffs and challenging market conditions in China. Despite this setback, BMW maintains its commitment to previously outlined annual targets.
The company anticipates a resurgence in demand across various automotive markets, contingent upon a continued stabilization of inflation and further, albeit moderate, reductions in key interest rates. Regarding China, BMW expects sustained high levels of competition and growth concentrated within the more affordable vehicle segments. In Europe, sales are projected to rise, spurred by the increasing popularity of electric vehicle models.
However, the possibility of enduring tariffs in the United States raises concerns about potential inflationary pressures. The ongoing US trade policy and potential retaliatory measures from other nations present a risk to global economic development.
