BMW declares 29 percent plunge in revenue
(MENAFN) BMW has reported a significant 29% drop in net profit for the first half of 2025, citing the impact of new US tariffs, sluggish consumer demand, and growing competition from China. The German automaker announced a post-tax profit of €4 billion ($4.6 billion), marking its third straight year of declining first-half earnings.
According to the company’s Thursday report, the decline was largely driven by US import tariffs on vehicles and auto parts, introduced by President Donald Trump in April. These duties, along with a new 15% tariff agreement between the US and EU set to begin in August, have drawn sharp criticism from EU officials and are expected to further strain the industry.
While BMW did not specify the exact financial hit from the tariffs, it estimated that trade-related costs could reduce its automotive profit margin by 1.25 percentage points in 2025—potentially costing billions. CEO Oliver Zipse acknowledged the importance of the trade agreement but warned that tariffs still hurt both exporters and consumers.
The company also highlighted growing competitive challenges, especially from Chinese manufacturers. Other major German carmakers were hit even harder: Volkswagen and Audi saw profits fall by more than 33%, while Mercedes-Benz experienced a 50% drop.
The poor performance across the sector has sparked broader economic concerns, especially as Germany, which entered a recession last year, is now projected by the IMF to have zero economic growth in 2025—placing it last among G7 economies.
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