BMW Reports Lower-Than-Expected Profit Margin

Core automotive segment impacted by weak demand in China

German automaker BMW has reported a lower-than-expected profit margin in its core automotive segment for the second quarter of 2024. The company attributed the decline to weak demand in China, its largest market.

BMW's profit margin in its automotive segment fell to 8.2% in the second quarter, compared with 9.1% in the same period last year. The company's overall revenue rose by 4.8% to €29.1 billion, but this was largely due to higher sales of motorcycles and financial services. Automotive sales declined by 1.3% to €23.8 billion.

BMW said that demand for its vehicles in China, its largest market, was particularly weak in the second quarter. The company's sales in China fell by 11.4% to €5.7 billion. BMW blamed the decline on the ongoing COVID-19 pandemic and the global economic slowdown.

The news of BMW's lower-than-expected profit margin sent its shares down by 3% in early trading. The company's shares have now lost more than 20% of their value so far this year.