BMW Group reported a 10.6% year-on-year decline in third-quarter 2026 profit before tax to €2,083 million, while fully electric vehicles accounted for 20% of its global deliveries. Including plug-in hybrids, electrified models represented 27.4% of deliveries during the period.
Group revenue fell 5.8% to €30,452 million, while total vehicle deliveries declined 6.3% to 551,075 units, BMW said on November 4. The company recorded a Group profit-before-tax margin of 6.8% and an Automotive segment EBIT margin of 3.4%.
For the first nine months of 2026, BMW delivered 1,707,802 vehicles, down 4.9% year on year. Profit before tax over the same period decreased 23.9% to €6,128 million.
Fully Electric Vehicles Account for 20% of Deliveries
BMW’s electrification performance varied across regions during the third quarter. In Europe, electrified vehicles, including battery-electric and plug-in hybrid models, accounted for 46.9% of deliveries. Fully electric vehicles alone represented 34.7% of the regional total.
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Deliveries increased 2.6% in Europe and 2.5% in the United States, partially offsetting weaker performance in China. BMW’s sales in the Chinese market declined by approximately 25%, reflecting continued competitive pressure and the broader market downturn.
The company is preparing to introduce the long-wheelbase BMW iX3 in China in November, with additional Neue Klasse models scheduled to follow during 2027.
Neue Klasse and Gen6 Technology Expansion
BMW said Neue Klasse technology, including its sixth-generation (Gen6) battery technology, is being introduced across its model portfolio. The technology is available in the BMW iX3, i3, i7, iX4 and iX5, with further models expected to receive the technology in the coming months.
The expansion of the Neue Klasse lineup is part of BMW’s broader electrification strategy and its transition towards newer vehicle and battery technologies.
The company is also accelerating the phase-out of selected models based on its fifth-generation (Gen5) battery technology as production of Neue Klasse vehicles increases.
Automotive EBIT Margin Falls to 3.4%
The Automotive segment generated €26,669 million in third-quarter revenue, down 6.5% year on year. Segment EBIT declined 39.7% to €901 million, resulting in an EBIT margin of 3.4%, a decrease of 1.8 percentage points.
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BMW attributed the weaker performance to lower sales volumes, intense competition, particularly in China, and negative currency effects. Higher import tariffs reduced the segment’s EBIT margin by approximately 1.25 percentage points during the quarter.
The settlement of legal proceedings related to the Integrated Braking System provided a positive contribution, partially offsetting the pressures on the segment’s financial results.
Automotive free cash flow was negative €566 million in the third quarter, while the nine-month figure reached €724 million. BMW maintained its full-year target of generating more than €2.5 billion in Automotive free cash flow.
BMW Reiterates Lowered 2026 Margin Forecast
BMW reiterated its revised 2026 Automotive EBIT margin guidance of -0.5% to +0.5%, reduced from its earlier forecast of 1% to 3%. The company said the outlook includes an approximately 2.5-percentage-point impact from portfolio and structural measures.
BMW Lowers 2026 Automotive Margin Outlook as Neue Klasse Ramp-Up Accelerates Gen5 Battery Phase-Out
These measures include bringing forward the phase-out of selected Gen5 battery-based models as the Neue Klasse production ramp-up accelerates, alongside broader organizational and operational restructuring.
Milan Nedeljković, chairman of the Board of Management of BMW AG, said:
“Current developments in our industry call for decisiveness and swift implementation. We will therefore specifically intensify and accelerate structural measures,”
The updated guidance reflects the costs associated with BMW’s portfolio transition and restructuring as it expands its next-generation electric vehicle technology.