BMW Boosts China Sales Support, Forecasts Slight 2025 Profit Dip
BMW has announced it will financially support its dealers in China, following weaker-than-expected sales in the third quarter. The automaker also revised its forecast for the Chinese stock market and expects a slight decrease in its pre-tax result in 2025. The stock price fell by around 1% in after-hours trading on yahoo finance.
BMW's sales in China during the third quarter were lower than anticipated, leading the company to adjust its stock market today forecasts. To compensate for this, BMW will provide direct financial support to its dealers in the region from its own company funds. This move aims to offset lower bank commissions on the sale of financial products and mitigate the impact of weaker sales.
The German automaker's third quarter sales increased by nearly 9% compared to the previous year. This growth can be largely attributed to a weak prior-year quarter affected by brake problems. Despite this positive growth, BMW's pre-tax result is now expected to decrease slightly in 2025 compared to 2024.
BMW's stock price reacted to the revised forecast, falling by around 1% in after-hours trading on yahoo finance. The company's direct financial support to its Chinese dealers is expected to help stabilise the stock market today and mitigate the impact of weaker sales. However, the slight decrease in the pre-tax result for 2025 indicates that the company faces ongoing challenges in the Chinese stock market.
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