BMW's net profit fell about 15% in the third quarter to €1.44 billion, as weak China demand and restructuring charges forced its second profit warning of the year.

Revenue slipped nearly 6% to €30.45 billion and pre-tax earnings fell 11% to €2.1 billion, in line with forecasts. The core automotive margin narrowed to 3.4%, above the 3.1% analysts expected but down from 5.2% a year earlier.

On 3 November, the night before the results, BMW scrapped its guidance for the second time in under five months. It now expects the automotive margin between minus 0.5% and plus 0.5% in 2026, meaning the unit could post an operating loss, against 1% to 3% in June. The cut reflects fourth-quarter restructuring costs, including 8,000 layoffs in Germany.

"Current developments in our industry call for decisiveness and swift implementation. We will therefore specifically intensify and accelerate structural measures," chief executive Milan Nedeljkovic said.

China slump drives the reset

China remains the sore spot. Deliveries there fell 24.8% in the quarter, dragging global deliveries down 6.3%, even as sales in Europe and the US edged higher. Local rivals such as BYD, Xiaomi and NIO offer comparable technology at lower prices in what was once one of BMW's most profitable markets.

BMW is far from alone. Mercedes-Benz cut its 2026 outlook in late October, lowering its core car margin guidance to 2% to 3% from 3% to 5%. Volkswagen has approved 50,000 more job cuts, lifting its reduction target to about 100,000 by 2030.

There is a bright spot. Strong demand for models on BMW's Neue Klasse platform means extra shifts, and the new iX3 drew more than 100,000 orders in Europe in its first year. Battery-electric deliveries rose 7.2% in the quarter, and about 20% of the 551,000 cars delivered were electric.