German luxury carmaker BMW posted a steep drop in profit last year due to weakening sales in China and technical problems with braking systems.
The company on Friday reported €7.7 billion ($8.6 billion) in after-tax profit, a 37% decline from the previous year.
Revenues also saw a significant setback, falling 8.4% to €142 billion.
This marked the second consecutive year of sharp profit declines for the Munich-based company.
In addition to weakening sales in China, BMW faced technical issues with braking systems purchased from its German supplier Continental.
However, BMW expects demand to increase in the current year. While the situation remains challenging and recent US tariff increases add pressure, the company anticipates the pre-tax result to be roughly in line with the 2024 level.
BMW’s struggles mirror those of other major German carmakers. Volkswagen and Mercedes-Benz also reported profit declines in 2024, with Volkswagen’s profit dropping 31% to €12.4 billion and Mercedes-Benz’s falling 28% to €10.4 billion.
Like BMW, both companies are grappling with the tough market conditions in China.