FRANKFURT: German carmaker BMW reported a 3% fall in annual profit today, despite US tariffs and cutthroat competition in China, far smaller than the double-digit plunges seen at rivals.
Net profit in 2025 fell to €7.45 billion (US$8.6 billion), the Munich-based firm said, compared to earlier reported falls of almost a half at Mercedes-Benz and the Volkswagen Group.
“Over the past years, we have adopted the right strategic positioning,” BMW CEO Oliver Zipse said.
“We are benefiting from that today: In a challenging environment, we do not need to change direction but can maintain our course,” he added.
BMW has taken a more flexible approach to electric vehicles (EVs) than some of its competitors, deciding early on to maintain petrol and diesel options for its customers.
Whereas firms from Porsche to Ford and Jeep-owner Stellantis have since booked very costly hits measured in the billions following partial pivots away from EVs, BMW has so far avoided this at the same time as seeing its electric sales rise.
For 2026, BMW said EU and US tariffs as well as intense competition in China would continue to weigh on its results, forecasting a moderate drop in earnings before tax.
“Total tariff costs amounted to roughly €1.75 billion for the year,” BMW said.
Though in a far more comfortable position than the likes of Audi or Porsche thanks to its large plant in South Carolina, BMW nevertheless has to pay duties on some imports into the US, including on car parts that come from outside North America.
The EU in 2024 also put tariffs on Chinese-made electric cars, hitting BMW’s exports of electric Minis out of the country.
