(MENAFN) BMW Group suffered a sharp decline through the first three quarters of 2025, with Chinese market weakness and American tariff pressures hammering the automaker's bottom line, Wednesday's financial disclosures reveal.

The Munich-based luxury vehicle manufacturer posted net profit of €5.7 billion ($6.5 billion) for the January-September period—a 6.8% year-over-year drop from €6.1 billion recorded in 2024's corresponding timeframe.

Pre-tax earnings (EBIT) declined 9.1% annually to €8 billion during the nine-month stretch.

Revenue tumbled 5.6% to €99.9 billion in the January-September window, with China's increasingly competitive landscape delivering particularly severe damage.

Automotive profit margins compressed from 6.6% to 5.9% compared to last year's equivalent period.

The automaker attributed margin erosion to deteriorating Chinese sales volumes and ongoing transatlantic tariff tensions with Washington.

Third Quarter Shows Distorted Recovery
BMW Group's consolidated third-quarter revenues—spanning BMW, MINI, and Rolls-Royce brands—edged down 0.3% year-over-year to €32.3 billion.

However, pre-tax profit exploded 177.9% to €2.329 billion due to exceptional one-off adjustments, while net earnings rocketed 256.5% to €1.7 billion.

The July-September 2024 comparison period had been devastated by Continental-supplied brake system defects impacting approximately 1.5 million vehicles, which severely depressed prior-year profits.

German Auto Sector Faces Systemic Crisis
The China downturn has simultaneously battered BMW's domestic competitors Mercedes-Benz and Volkswagen.

Mercedes-Benz reported net profit collapsing 50.3% year-on-year to €3.8 billion for the January-September period.

Volkswagen Group—whose portfolio encompasses Audi, Bugatti, Seat, Skoda, and Porsche—witnessed profits crater 60% to €3.4 billion across the same nine-month timeframe.

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