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Reuters

BMW, the world's biggest luxury carmaker, warned its outlook could be at risk from any further deterioration in the Chinese market, where its sales have begun to fall for the first time in a decade.
The German company, which said in May that growth in China would be "less dynamic", said it still expected record global sales and pre-tax profit for the year, but added the caveat that challenges in China could affect its targets.
It reported a 3 per cent decline in second-quarter operating profit as it sold a higher proportion of low-margin cars and invested in new models.
Its sales in China, the world's biggest car market, fell in May and June after a decade of growth and the group said it was facing fierce competition in the Chinese market and elsewhere.
"If conditions on the Chinese market become more challenging, we cannot rule out a possible effect on the BMW Group's outlook," the Munich-based carmaker said in its quarterly report.
Shares in BMW dropped 2 per cent in early trading on Tuesday and were the second-biggest decliners on Germany's DAX index, which was flat.
"The scale of the increase during the forecast period is likely to be held down by fierce competition on automobile markets, rising personnel costs, continued high levels of upfront expenditure to safeguard business viability going forward and upcoming challenges relating to the normalisation of the Chinese market," BMW said.
Rival Audi cut its global sales forecast last week because of slumping demand in China, where economic growth is slowing.
However, Mercedes-Benz maker Daimler, starting from a lower base and with attractive new models in the pipeline, expects its sales momentum in China to continue.
BMW said higher personnel costs, increased expenditure on new products and a shift in sales towards lower-margin compact vehicles were the main reason for its quarterly profit dip.
Earnings before interest and tax, at €2.52 billion, matched the average forecast in a poll.
In May, sales of BMW and Mini cars in China fell 4.2 per cent from a year earlier, the first monthly decline in a decade.


BMW wary on outlook amid concerns over slowing sales in China

Second-quarter operating profit at BMW fell 3 per cent as the company sold a higher proportion of low-margin cars and invested in new models. Photo: Reuters

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Carmaker tips record annual global sales despite second-quarter operating profit fall


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Carmaker tips record annual global sales despite second-quarter operating profit fall

Carmaker tips record annual global sales despite second-quarter operating profit fall