Core Insights - BMW's sales in China continue to decline, exacerbated by tariff impacts, with a reported 15.5% drop in the first half of the year [2][3][7] 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 the year was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [2] - The EBIT margin for the automotive business decreased by 2.4 percentage points to 6.2% [2] Market Performance - The Chinese market was the largest single market decline for BMW, with deliveries dropping to 318,000 units [2][7] - Despite overall declines, BMW's electric vehicle sales rose, with over 220,000 pure electric vehicles delivered, a 15.7% increase year-on-year [4] - In Europe, BMW's electric vehicle penetration rate reached 34.8%, with a market share close to 40% in the first half of the year [5] Strategic Initiatives - BMW is focusing on electric vehicle development, investing over €4 billion in R&D for new generation technologies and the Neue Klasse platform [6] - The company plans to launch 40 new models by 2027, emphasizing electric vehicles [6] - BMW is collaborating with local Chinese suppliers to enhance its technology offerings and adapt to local market demands [9] Challenges and Outlook - Tariff pressures are expected to continue affecting BMW's profitability, with a projected EBIT margin decline of approximately 1.25% for 2025 [9][10] - Competition from local Chinese brands is intensifying, with expectations of continued sales declines in the Chinese market [11]