BMW’s Q2 2024 financial results saw lower-than-expected profit margin in its core automotive segment.
Earnings before interest and tax (EBIT) in its car segment fell to 8.4% from 9.2% in the same period last year.
The German automaker said: “In China, in particular, revenues were impacted by heightened competition and weaker consumer sentiment.”
China's car market has been impacted over the past year by weak demand and an intensified price war. The Chinese economy has also been negatively impacted by problems in the property sector which have dented confidence more generally.
Auto revenues for Q2 2024 were €36,944 million, down from €37,219 million from Q2 2023.
Net profit in Q2 2024 was down 8.6% to €2,705m.
BMW said it expected the economic situation in China to begin to stabilise in Q3 2024, with positive momentum in H2 expected on a global scale from the new BMW 5 Series and current ramp-up of its MINI family.
In H1 2024, sales success was largely driven by BEVs and the higher priced BMW and BMW M models.
The BMW, MINI and Rolls-Royce brands reported a 24.6% increase in BEV deliveries to 190,614 fully electric vehicles. The BMW brand is in third place worldwide, with almost 180,000 BEVs delivered.
In total, the company delivered 1,213,276 vehicles to customers across all BMW Group brands between January and June, reaching the same high level as the previous year.
High sales volumes and positive product mix effects lifted Automotive Segment revenues to € 63,009 million in the first six months of this year.
