BMW had a challenging year in 2025, with profits falling as the company faced stronger competition in China and pressure from global trade tariffs.
The German automaker reported operating profit of €10.2 billion, down 11.5 percent from the previous year and its lowest level since the pandemic. Net profit also declined slightly to €7.5 billion, while total revenue dropped 6.3 percent to about €133.5 billion.
Most of the pressure came from BMW’s automotive division, where profit margins fell to 5.3 percent, well below the company’s usual target of 8 to 10 percent.
Tariffs were a major factor behind the decline. Import duties in the United States and European tariffs on Chinese-built electric vehicles, which affect the Mini brand, reduced margins by roughly 1.5 percentage points. According to BMW’s finance chief Walter Mertl, profits would likely have grown in 2025 if tariffs had not been in place.
Despite the financial drop, BMW still delivered around 2.46 million vehicles worldwide, a slight increase compared with the previous year. Sales were particularly strong in Europe and the United States, where demand continued to grow.
China, however, told a different story. Sales there fell by more than 12 percent, as local car brands became stronger competitors.
Electrified vehicles remain one of BMW’s key growth areas. The company sold more than 640,000 electrified cars last year, representing about 26 percent of its total global sales, with fully electric models making up around 18 percent.
Looking ahead to 2026, BMW expects profit margins to remain under pressure, forecasting an automotive margin between 4 and 6 percent.
Still, CEO Oliver Zipse said the company is confident in its strategy and believes BMW is on the right path for long-term success.
