BMW Increases Car Profit Margin as Electric Vehicle Investment Reaches Its High Point

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 05 2025

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Source: Reuters

BMW's Financial Performance: BMW reported a core profit margin increase to 5.2% in Q3, up from 2.3% a year earlier, despite challenges from tariffs and competition, with shares rising 2.4% following the announcement.
Future Growth Plans: The company anticipates growth from its new all-electric "Neue Klasse" series, with the first model expected to launch in 2026, while current orders for the iX3 model extend into 2026.
Impact of Tariffs: High U.S. tariffs have reduced BMW's car margin by approximately 1.75 percentage points in Q3, affecting overall profitability amid a competitive market landscape.
Strategic Positioning: BMW's U.S. production presence provides a competitive advantage during trade tensions, although it faces challenges from EU tariffs on its Chinese-made electric Mini.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.