German carmaker BMW has reported a 23% drop in first-quarter profit as tariffs, weaker demand in China and currency effects weighed on results in the final full quarter under outgoing chief executive Oliver Zipse.
Net profit fell to €1.67 billion ($1.96 billion) in the January to March period, the Munich-based group said on Wednesday. Revenue declined 8.1% to €31 billion, while vehicle sales slipped 3.5% to 565,780 cars.
The year-on-year comparison was distorted as US tariffs introduced under US President Donald Trump had not yet taken effect in the same quarter last year. BMW expects the measures to continue weighing on results in the current financial year, though less than in 2025.
Weakness in China, where all German carmakers are struggling, also dragged on sales, and strong demand in Europe could not offset the decline. However, the carmaker pointed to strong order intake in Europe.
"During the first three months on the year, we received more orders in Europe than in any other quarter in the company's history," BMW chief Oliver Zipse said in a statement. "We are well positioned to deliver continued success, despite challenging conditions."
Despite the challenging environment, BMW said it would continue to focus on cost discipline without launching a formal savings programme. Finance chief Walter Mertl said the company remained focused on costs in a challenging economic environment, with measures across the business.
Zipse is due to step down after the annual general meeting on May 13 and will be succeeded on May 14 by production chief Milan Nedeljkovic.
