BMW has delivered a remarkably strong performance in the third quarter, reporting a net profit of around €1.7 billion — more than three times the result from the same period last year.
The improvement follows a weak quarter in 2024 caused by braking system issues, yet industry analysts stress that the latest figures signal genuine resilience in a difficult market.
As European car sales soften and the transformation toward electric mobility accelerates, BMW appears better positioned than many competitors.
A stark contrast to other German manufacturers
The competitive landscape shows clear divergence:
- Volkswagen Group reported a loss exceeding €1 billion in Q3
- Mercedes-Benz recorded a 31% profit decline, with nine-month earnings halved year-over-year
- Porsche is fighting to remain profitable in a rapidly shifting luxury market
Several brands are contending with restructuring costs, falling Chinese demand and strategic missteps in electrification timing.
BMW CEO Oliver Zipse expressed confidence in the company’s trajectory: “We have demonstrated how robust and viable our business model remains.”
He added that BMW is on track to meet EU emissions requirements without trading credits or cooperation pooling — a notable achievement as regulatory pressure intensifies.
Electric transformation boosts demand in Europe
A bright spot came from BMW’s latest electric lineup. The iX3, the first model based on the upcoming “Neue Klasse” EV architecture, is outperforming internal expectations in Europe. Strong order volumes are seen as a promising indicator as BMW scales its next-generation electric strategy.
Yet the company acknowledges uncertainty ahead. China — a critical car market for German manufacturers — is proving increasingly competitive, with domestic brands gaining market share and import tariffs remaining a concern.
BMW revised its full-year forecast slightly downward in October, reflecting external pressures despite robust operational performance.
Expert perspective: strategy matters
Automotive analyst Ferdinand Dudenhöffer attributes BMW’s comparative strength to consistent long-term planning:
- Mercedes-Benz, he argues, over-emphasised luxury positioning
- Porsche moved too aggressively into electrification
- Volkswagen is still absorbing the aftermath of restructuring and diesel scandals
According to Dudenhöffer: “Only BMW has avoided drastic corrections — and that protects both sales and margins.”
Still, he cautions that success in China remains essential. Without growth in the world’s largest EV market, maintaining global leadership will become challenging.
Resilience — but not immunity
The auto industry is undergoing its biggest transformation in decades, pressured by:
- Electrification and battery supply chains
- Geopolitical uncertainty
- Industrial policy shifts and tariffs
- Cooling demand in key markets
BMW currently stands out — but its strong quarter does not eliminate the systemic risks facing all European automakers.
The coming year will reveal whether BMW’s stability is a short-term outlier or a roadmap for the sector’s future.
