BMW has reported a significant drop in profits for the first half of the year. The automotive manufacturer posted a net profit of €4.015 billion after tax, a decrease of 29% compared to the €5.656 billion recorded during the same period last year, according to a company announcement released on Thursday.
The primary factors contributing to this decline are attributed to the implementation of US tariffs and challenging business conditions within the Chinese market.
Despite this setback, BMW maintains its previously stated annual targets. The company anticipates a rise in demand across various automotive markets, predicated on a continuing stabilization of inflation and further, albeit moderate, reductions in key interest rates. Expectations for China remain consistent, forecasting intense competition and growth primarily within more affordable price segments. In Europe, the manufacturer anticipates expansion driven by the increasing adoption of electrified vehicle models.
However, the potential for lasting tariffs in the United States raises concerns, especially considering a potentially inflationary environment. BMW highlights the potential negative impact of US trade policy and possible retaliatory measures from other nations, on the broader global economic outlook.