BMW cut its 2026 profit forecast big time. They now expect automotive operating margin only 1-3% instead of 4-6% before.
Main reason is fast drop in demand in China (their biggest market), especially for non-electric cars. Competition from local brands very strong.
Also, Iran war cause higher energy costs and bad consumer feeling around world.
BMW say sales will fall a bit this year, pretax profit drop more than 15%. Shares fall 6-9% after news, hit lowest in years.
This is warning sign for luxury car sector but not full “global demand collapse” yet — Europe and US sales still okay, problem mostly China + geopolitics. Many see it as bellwether for auto industry troubles.
BMW official press release: https://www.press.bmwgroup.com/global/article/detail/T0458585EN/bmw-group-adjusts-guidance-for-2026
Reuters report: https://www.reuters.com/world/china/bmw-lowers-2026-outlook-china-downturn-iran-war-2026-06-16/
CNBC on profit warning: https://www.cnbc.com/2026/06/17/bmw-profit-warning-autos-cars-china-iran.html