German automaker BMW is struggling in the world’s largest car market, China, where its sales plummeted by 13.4% last year due to intense competition from local electric vehicle (EV) makers like BYD and Xiaomi. The company reported a net profit collapse of over 30% despite slight sales increases in the US and Europe.
The trade conflict sparked by President Donald Trump’s tariffs on Canada and Mexico is adding pressure, with BMW CEO Oliver Zipse warning that it could cost the company up to $1 billion this year. However, he believes the disruptions will be short-lived.
To counteract the decline, BMW plans to launch a new lineup of next-generation EVs called the “Neue Klasse” later this year. The move aims to boost sales and compete with emerging local players in the rapidly growing Chinese EV market.
Source: https://www.businessinsider.com/bmw-sales-china-problem-trump-trade-war-vw-byd-2025-3