---
title: "BMW Q2 profit falls short of expectations, with a 4.7% decline in deliveries in China"
description: "BMW's second-quarter profit declined due to a decrease in sales in China. BMW reiterated its full-year performance guidance, but faces challenges such as a weak European economy, inflation, and declin"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/210420667.md"
published_at: "2024-08-01T06:26:03.000Z"
---

# BMW Q2 profit falls short of expectations, with a 4.7% decline in deliveries in China

> BMW's second-quarter profit declined due to a decrease in sales in China. BMW reiterated its full-year performance guidance, but faces challenges such as a weak European economy, inflation, and declining sales of electric vehicles. The company's car deliveries in the Chinese market decreased by 4.7%, prompting them to raise vehicle prices and lower sales targets to avoid a price war. BMW expects the Chinese economy to stabilize from this quarter onwards. Additionally, the company's net profit decreased by 9%, citing high investment levels and IT project costs dragging down earnings. BMW has been successful in electric vehicle sales, surpassing Mercedes-Benz and Audi

According to the information from Zhitong Finance and Economics APP, Bayerische Motoren Werke Aktiengesellschaft (BMWYY.US) saw a decline in profit in the second quarter, attributed to a decrease in sales in its main market, China.

Data shows that the EBIT profit margin of this car manufacturer was 8.4%, lower than the 9.2% in the same period last year and below analysts' expectations of 8.8%. However, BMW reiterated its full-year performance guidance.

Currently, several car manufacturers are facing challenges such as weak economic growth in Europe, persistent inflation, and declining sales of electric vehicles. Last week, Mercedes-Benz Group lowered the upper limit of its annual profit margin forecast. Performance of Stellantis NV (STLA.US), Nissan Motor Co., Ltd. (NSANY.US), and Ford Motor Company (F.US) also fell below expectations.

BMW stated on Thursday that its revenue, especially in the Chinese market, was affected by intensified competition. In the second quarter, the company's car deliveries in the Chinese market decreased by 4.7%.

To address this, BMW is raising prices for all its models and reducing sales targets for dealers in China to avoid intense price wars. The company expects the economic situation in China to stabilize starting from this quarter.

Furthermore, BMW mentioned that increased production and personnel expenses, as well as IT project costs, weighed on earnings. The group's net profit in the second quarter decreased by 9% to 2.7 billion euros (29 billion US dollars). BMW pointed out that its investment level has been high, with record spending expected to peak this year in model transformation and electric vehicles.

The car manufacturer has achieved success in the sales of electric vehicles. In the second quarter, global deliveries of its battery electric vehicles such as the i4 and iX1 surged by 22%, surpassing competitors Mercedes-Benz and Audi. The company stated that its attractive product portfolio has seen growth in a challenging market

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.