BMW posted a sharp earnings decline in Q1 as competition in China squeezed both pricing and volume. EBIT fell 36% while revenue slipped 8.1%, dragging after‑tax profit to 1.67 billion euros versus 2.17 billion a year earlier. The results reflect mounting pressure on premium German marques in key markets.

Currency headwinds and higher raw‑material costs added to the strain, eroding margins across the group’s portfolio, which includes Mini and Rolls‑Royce. Analysts see the slowdown as part of a broader squeeze on luxury automakers confronting tariffs, a sluggish EV transition and intensified Chinese domestic rivals. Investors will watch how the cost curve evolves through the rest of the year.

Amid the turmoil, BMW announced a leadership change: production chief Milan Nedeljkovic will succeed Oliver Zipse as CEO. The move aims to steady execution as the company navigates a volatile market and prepares its next‑generation electric lineup. Shareholders now assess whether fresh leadership can restore profitability without sacrificing brand prestige.

The earnings dip sent BMW’s shares down roughly 4% in early trading, widening the gap with rivals Volkswagen and Mercedes‑Benz, whose Q1 results showed milder contractions. Market participants will measure the impact of pricing pressure against the automaker’s cash‑rich balance sheet, which still supports ongoing investments in battery technology and autonomous driving.