BMW Q1 Pretax Profit Drops 25% but Keeps 2026 Financial Targets

BMW Group reported first-quarter 2024 revenue of €31 billion, down 8% year-over-year, and pre-tax profit of €2.3 billion (approximately $2.7 billion), a 25% decline compared to the same period last year. The automotive segment’s EBIT margin for the quarter stood at 5%, down from 6.9% a year earlier. The group’s margin declined by 1.25 percentage points, impacted by factors including U.S. tariffs and the European Union’s additional tariffs on Chinese-made electric vehicles—which affect the MINI brand. Despite the earnings decline, BMW maintained its full-year financial guidance unchanged, forecasting a core operating margin for 2024 in the range of 4% to 6%, slightly lower than the 5.3% recorded in 2023. This outlook does not factor in the potential impact of a proposed U.S. increase in tariffs on European auto imports—from 15% to 25%—and assumes that the conflict in the Middle East will not persist long-term. BMW CEO Oliver Zipse stated that the proposed U.S. tariff hike is merely a negotiating tactic and is not expected to take effect. Bloomberg Intelligence estimates that if implemented, the higher tariffs would add €540 million in costs for BMW. In China, BMW’s first-quarter deliveries fell 10% year-over-year to 144,072 vehicles, contributing to a 3.5% global sales decline to 565,780 units. The company said it will focus on balancing sales volume, transaction prices, and dealer profitability in China. It has already invested more than €10 billion in developing its “Neue Klasse” electric vehicle platform and expects the Chinese market to stabilize later this year.