BMW Sees Profit Rise Despite China Slowdown and Tariff Pressures

German carmaker BMW reported on Wednesday a notable rise in profitability in the third quarter, despite facing challenges from slowing Chinese sales and trade tariffs.

The premium manufacturer posted an operating profit margin of 5.2 percent in its automotive division for the July–September period, up from 2.3 percent in the same period last year—a key metric closely watched by investors.

However, the company noted that tariffs in both the United States and the European Union—particularly affecting BMW’s electric vehicles exported from China—continued to weigh on profit margins.

BMW Chief Executive Oliver Zipse described the performance as evidence of the firm’s resilience in the face of multiple challenges.

“These include a shifting geopolitical framework with trade impacts such as tariffs, as well as a rapidly evolving market in China,” he said.

The group, which also produces Mini and Rolls-Royce vehicles, had cut its outlook for 2025 in October due to tariff costs and slowing sales in the Chinese market, where European manufacturers are losing ground to local competitors.

Despite these hurdles, BMW is considered better positioned than some other German automakers to weather the tariff pressures introduced under former US President Donald Trump, owing to its substantial American operations.

The company’s net profit for the third quarter reached 1.7 billion euros ($1.9 billion), a sharp rise from 476 million euros in the same period of 2024, when results were heavily impacted by a large-scale vehicle recall.

Revenues remained steady at 32.2 billion euros.