BMW Shares Fall to Lowest Level Since 2020 After Profit Warning

BMW shares dropped around 7% on Wednesday, reaching their lowest level since November 2020 after the German automaker issued a sharp profit warning. The company pointed to continued weakness in China, the world’s largest car market, and the impact of the Iran war on prices and consumer confidence.

BMW lowered its automotive operating margin forecast to 1%–3% from its previous target of 4%–6%. The company also said it would step up cost cutting efforts and expects a negative one-off impact during the second half of 2026.

Analysts Warn of Possible Restructuring

Several analysts said the outlook cut was much larger than expected. Some now believe BMW could announce production capacity reductions in Europe later this year. The warning comes only weeks after new CEO Milan Nedeljkovic took charge.

Auto Industry Faces Growing Pressure

Competition in China remains intense as domestic brands gain market share and a prolonged price war continues. Analysts say BMW may increase local production in key markets such as China and North America to protect profitability and reduce reliance on exports from Germany.