German luxury automaker BMW announced Thursday that it anticipates a moderate drop in company profits this year, with vehicle deliveries expected to remain unchanged as international trade barriers create challenges for the business.
The Munich-based manufacturer projects that increased tariff pressures will reduce profit margins in their automotive division by approximately 1.25 percentage points by 2026. The company forecasts margins between 4% and 6%, down from 5.3% recorded in 2025.
BMW’s pre-tax profits dropped 6.7% in the previous year to 10.2 billion euros (equivalent to $11.78 billion), with projections showing an additional decline of 5% to 9.9% for 2026.
Vehicle sales are expected to match 2025 levels, following a significant drop in the crucial Chinese market during that period.
While BMW’s manufacturing operations in the United States have helped reduce the impact of American import duties – with the company’s largest facility located in Spartanburg, South Carolina – the automaker still contends with European Union tariffs on its electric Mini vehicles produced in China.
