BMW reported a 25% decline in first-quarter profit for 2025, totaling €3.1 billion, amid challenges like U.S. import tariffs and intensified competition in China. Despite these hurdles, the company remains committed to its electric vehicle (EV) strategy, maintaining its full-year profit guidance and forecasting an automotive EBIT margin between 5% and 7%.
The automakers resilience is bolstered by strong EV sales, which surged by 32% year-on-year in Q1 2025. This growth underscores BMW’s strategic focus on electrification, even as it navigates geopolitical uncertainties and market fluctuations.
BMW’s CEO, Oliver Zipse, anticipates a reduction in U.S. tariffs on foreign cars by July 2025, advocating for “zero-zero” tariff agreements to mitigate trade conflicts. The company’s diversified production facilities in the U.S. and China have helped cushion the impact of these tariffs .
Looking ahead, BMW plans to introduce its Neue Klasse EV platform in 2025, aiming to enhance vehicle range and efficiency. This initiative is part of BMW’s broader goal to deliver 2 million battery electric vehicles globally by the end of 2025 and have half of its sales be BEVs by 2030.
In the Chinese market, BMW faces stiff competition, with Q1 2025 sales declining by 17%. However, the company is investing heavily in local R&D and plans to introduce 11 new pure electric models in China this year, many of which will be domestically produced by 2026.
Despite current challenges, BMW’s strategic investments in electrification and digitalization position it well for future growth. The company’s commitment to innovation and adaptability underscores its determination to lead in the evolving automotive landscape.
