BMW Brilliance production facility in Shenyang
Publication date: 25-10-2025
BMW AG is a German premium-car manufacturer operating through the BMW, MINI and Rolls-Royce brands. The group combines automotive production with financial services and ranks among the world’s largest auto exporters.
In the first half of 2025, BMW delivered 41 % of its vehicles in Europe, 20 % in the Americas, and 36 % in Asia, with China accounting for about 26 % of total sales — still the group’s largest market.
In October 2025, BMW narrowed its full-year automotive EBIT-margin guidance from 5–7 % to 5–6 % and lowered expected free cash flow to above € 2,5 billion (from > € 5 billion). The downgrade reflects weaker sales and pricing in China, temporary higher U.S. import tariffs, and delayed reimbursement of customs duties.
In China, deliveries are down about 11 % year-to-date, while competition from local electric-vehicle makers has intensified. BMW began providing monthly financial support to dealerships after local banks sharply reduced the commissions paid for arranging car loans and insurance — from about 15 % to 5 %. The sudden cut reduced dealer income and led to heavier discounting. To prevent further price erosion and protect resale values, BMW decided to compensate dealers directly through monthly payments until the end of 2025. These measures temporarily trim the company’s automotive margin by about 0,5 percentage points, but help stabilise sales and prices, supporting a gradual recovery once the Chinese market normalises.
On the U.S. front, following the U.S.–EU tariff adjustment effective 1 August 2025, import duties on European cars entering the U.S. were cut from 27,5 % to 15 %. BMW expects to recover previously paid duties in 2026, an inflow estimated at € 700–900 million. Until then, 2025 free cash flow will remain about € 1,7 billion below the earlier plan. Although European carmakers still face duties roughly 12,5 percentage points higher than before the Trump-era rates, the new framework provides predictability and allows gradual price adjustments to offset most of the added cost during 2026.
S&P revised BMW’s outlook to negative in August 2025 (rating A) due to tariff and China-related pressures, while Moody’s keeps A2 with a stable view. The company holds over € 18 billion in cash and maintains a conservative financial policy, ensuring sufficient capacity to manage temporary earnings and cash-flow pressure. From 2026 onward, the rollout of the Neue Klasse fully electric vehicle platform should reduce production costs and narrow the profitability gap between electric and combustion models by roughly 1 percentage point of operating margin, according to company guidance.
as of 30.06.2025 EUR bn
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Assets | 267,7 | EBITDA Margin | 13 % |
| Revenue | 136,5 | Net debt (cash), industrial | -44,8 |
| EBITDA | 17,7 | Net Debt/EBITDA (industrial) | -2,5x |
| Net Profit | 7,3 | FCF | 4,9 |
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