BMW expects 2026 earnings to decline as tariffs bite

Published Thu, Mar 12, 2026 · 05:53 PM

[BERLIN] BMW expects its group pre-tax earnings to decline moderately this year and its deliveries to stagnate, with trade barriers weighing on its core cars business, the company said on Thursday (Mar 12).

Headwinds from higher tariffs will further impact its earnings before interest and tax margin in the automotive segment by about 1.25 percentage points in 2026, the German premium carmaker said. It forecast a margin in the range of 4 to 6 per cent, after 5.3 per cent in 2025.

In 2025, BMW’s group earnings before tax fell by 6.7 per cent to 10.2 billion euros (S$15 billion), and are expected to fall further in 2026, by between 5 and 9.9 per cent.

The group’s deliveries are forecast to stay on a par with 2025, when it faced a sharp sales decline in China, a key market.

BMW’s production presence in the US – its largest plant is in Spartanburg, South Carolina – has cushioned the blow of US import tariffs, but it also faces European Union tariffs on its Chinese-made electric Mini. REUTERS