BMW Group lowered its 2026 automotive margin outlook after accelerating portfolio and structural measures, while third-quarter net profit fell 14.7% and deliveries dropped sharply in China.
Net profit was €1.448 billion in the July 1 to Sept. 30, 2026, quarter, compared with €1.697 billion a year earlier. Revenue dropped 5.8% to €30.452 billion. BMW reported its results Wednesday.
In BMW's automotive segment, earnings before interest and taxes (EBIT) fell 39.7% to €901 million. The segment's operating margin narrowed to 3.4% from 5.2% a year earlier.
BMW Group delivered 551,075 vehicles worldwide, down 6.3%. China-region deliveries fell 24.8% to 114,445, while deliveries increased 2.6% in Europe and 2.5% in the United States. BMW Group's battery-electric deliveries rose 7.2% to 110,257 vehicles, equal to 20% of the total.
BMW said lower sales volumes, intense competition and currency effects weighed on automotive revenue. It also cited reduced Chinese subsidies for new-energy vehicles and subdued consumer demand as factors behind the wider market decline.
The full-year automotive operating margin forecast is now minus 0.5% to plus 0.5%, compared with the previous range of 1% to 3%. BMW expects portfolio and structural measures together to reduce the margin by about 2.5 percentage points, up from an earlier estimate of 1.25 points. The company said expenses from expanded measures are expected to weigh on fourth-quarter results and described the earnings impact as non-operational.
BMW said sustained demand for Neue Klasse models led it to add production shifts earlier, creating an opportunity to phase out previous vehicle and technology generations sooner. It expects Neue Klasse technology and cost efficiency to support future profitability. BMW AG has offered voluntary severance to employees in indirect roles in Germany.
“We will therefore specifically intensify and accelerate structural measures,” said BMW AG Management Board Chair Milan Nedeljković.
BMW Group plans to launch the iX3 LWB, its long-wheelbase model, in China in November. The company has not announced an exact launch date.
