BMW cuts automotive outlook for second time as restructuring deepens
The automaker faces prolonged weakness in China, the world’s top auto market
BMW has lowered its profit outlook for its automotive division for the second time in five months, citing ongoing challenges in China, the world's largest automotive market. The company announced on Tuesday (Nov 3) that it expects its automotive EBIT margin for 2026 to be between -0.5% and +0.5%, a significant drop from the previous forecast of 1-3%.
This decision comes as a result of one-off costs associated with accelerated job cuts and restructuring measures that BMW initiated this year. The weakening demand in China has been a major factor in this decision, as premium automakers face increasing competition from local, cost-effective brands. Other German automakers, including Mercedes-Benz, have also recently revised their profit outlooks due to the prolonged weakness in China, which has prompted major restructuring programs.
BMW's latest forecast includes a moderate decline in automotive segment deliveries in 2026, amounting to a decrease of 5-9.9%. Despite these challenges, BMW still anticipates automotive free cash flow to remain above 2.5 billion euros (US$2.8 billion).
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