Key facts
- BMW Group has lowered its 2026 earnings forecast.
- The company cited weak demand in China and higher energy costs as factors impacting its outlook.
- The downgrade reflects challenges faced by traditional luxury automakers in the Chinese market.
- Intensifying competition from domestic electric vehicle makers is also contributing to margin pressure.
BMW Group has lowered its 2026 earnings forecast, warning of a significant drop in profit as weak demand in China and higher energy costs linked to the Middle East conflict weigh on earnings. The downgrade highlights the mounting challenges facing traditional luxury automakers in China, the world’s largest car market, where a prolonged sales slowdown and intensifying competition from domestic electric-vehicle (EV) makers are squeezing margins and eroding market share.