Luxury automaker BMW has sounded the alarm on continued economic turbulence in 2025, following a staggering 37% drop in net profit last year reportedly.
For 2024, BMW’s net profit sank to €7.7 billion ($8.3 billion), while revenues slipped over 8% to €142.4 billion. The Munich-based group now finds itself in the same boat as other German automakers, grappling with a rough transition to electric vehicles and sluggish demand in China – one of its biggest markets.
BMW has warned that earnings before taxes in 2025 will likely remain at 2024’s subdued levels, though the ultimate outcome hinges on the rapidly shifting global trade landscape.
- The company pointed to the “continued challenging situation in China” and rising tariffs as major headwinds.
- The US-China trade war, coupled with weak consumer demand, has created an unpredictable business environment for global automakers.
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Adding to the uncertainty, US President Donald Trump has threatened to slap a 25% tariff on European Union car imports, a move that could deliver a severe blow to Germany’s auto industry.
Trump has already targeted Canada and Mexico with tariffs, though some were later rolled back following intense pressure from US carmakers.
With trade tensions running high and EV adoption proving more difficult than expected, 2025 is shaping up to be another tough year for BMW. The automaker’s ability to navigate geopolitical uncertainties and shifting market dynamics will be critical in determining whether it can steer back toward profit growth.
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