Core Viewpoint - BMW is facing significant challenges in the Chinese market, with a notable decline in sales and increased pressure from tariffs, impacting overall financial performance [1][11][21]. Group 1: Financial Performance - In the first half of 2025, BMW's global sales exceeded 1.2 million units, a slight decrease of 0.5% year-on-year [1]. - Revenue for the first half of 2025 was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [1]. - The EBIT margin for the automotive segment dropped by 2.4 percentage points to 6.2% [1]. Group 2: Market Performance - The Chinese market saw the largest decline for BMW, with sales dropping 15.5% to 318,125 units in the first half of 2025 [1][11]. - Despite challenges in China, BMW maintained leadership in revenue, net profit, and sales among the German luxury brands [1]. - In Europe, BMW's electric vehicle (EV) sales increased significantly, with a market share close to 40% for EVs [7][8]. Group 3: Electric Vehicle Sales - BMW's electric vehicle deliveries surpassed 220,000 units in the first half of 2025, marking a 15.7% increase year-on-year [6]. - The total delivery of new energy vehicles (including plug-in hybrids) reached 319,031 units, an 18.6% increase, accounting for 26.4% of total sales [6]. - MINI brand played a crucial role in the growth of electric vehicle sales, with a 361.7% increase in pure electric deliveries [5][7]. Group 4: Strategic Initiatives - BMW is focusing on electric vehicle development, with over €4 billion invested in R&D for new generation technologies [8][9]. - The company plans to launch 40 new models based on the new generation platform by 2027 [9]. - To strengthen its position in China, BMW is collaborating with local tech firms to develop intelligent driving systems tailored for Chinese roads [18]. Group 5: Future Outlook - BMW anticipates continued pressure on profit margins due to competition and tariff impacts, projecting a decline in EBIT margin to between 5% and 7% for the automotive segment in 2025 [20][21]. - The company expects to face ongoing competition from local brands in China, which may lead to a slight decline in sales in the coming years [21].