BMW's Forecast Downgrade Leads to Decline, with Mercedes Also Affected by Tariffs and China's Economic Slowdown
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 08 2025
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Source: SeekingAlpha
BMW's Earnings Forecast: BMW shares dropped nearly 6% after the company revised its 2025 earnings forecast, expecting an EBIT margin of 5%-6% instead of the previously guided 5%-7%, due to slow growth in China and U.S. import tariffs.
Competitive Landscape: The company faces increasing competition from local Chinese manufacturers like BYD and Xiaomi, which are providing affordable, feature-rich electric vehicles, while Western automakers struggle with declining sales and trade tensions.
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.
