BMW’s automotive revenue grew by 2% in Q3, with a 6% increase at constant currency. The Automotive EBIT margin was at 5.2%, falling within the full-year guidance range. Orders in Europe show one in three for the Neue Klasse iX3 model. Excluding tariffs, the underlying automotive EBIT margin would be just above 8%.

Volume growth remains strong for BMW, with continual annual growth rates of 4%, 5%, and 9% in Europe, the Americas, and other markets. The incorporation of the Gen6 battery in the iX3 reduces battery costs by 40% to 50%, supporting profit improvement. BMW’s cost reduction strategies help offset US tariff burdens and Chinese dealer support costs.

BMW has maintained its promise to reduce spending on research, development, and operational expenses through 2025, with further guidance to 2027. The company estimates additional costs from US tariffs and Chinese dealer support at around EUR 750 million. Reductions in R&D and other expenses accumulate to over EUR 500 million, excluding additional savings from material costs.

Read more at Morningstar: BMW Earnings: Commitment to Sequential Cost Reduction Helps Offset US Tariff and China Burdens