BMW anticipates a moderate decline in pre-tax earnings for 2026 and flat vehicle deliveries, as trade barriers and intense competition in China continue to challenge the German luxury automaker.

CEO Oliver Zipse said the company remains committed to revamping its model lineup and reducing costs, but cautioned that “our world remains unstable, and numerous risks will persist in the current financial year.”

In 2025, BMW’s pre-tax profit fell 6.7% to €10.2 billion ($11.78 billion), and the company projects a further 5–9.9% decrease in 2026.

Deliveries are expected to hold steady, following a year already impacted by a sharp decline in the Chinese market.

After experiencing a 12.5% drop in Chinese sales last year, BMW warned that 2026 could see similar performance, underscoring ongoing challenges in the world’s largest car market—a struggle shared by competitors Volkswagen and Mercedes.