German luxury car maker BMW fell sharply last year due to weak sales in China and technical problems with the brake system.
The company reported after-tax profits of 7.7 billion euros ($8.6 billion) on Friday, down 37% from the previous year.
Revenue also suffered a major setback, down 8.4% to €142 million.
This marks the second consecutive year that the Munich-based company’s huge profits have declined.
In addition to weakening sales in China, BMW faces technical issues with the brake systems purchased from its German supplier Continental.
However, BMW expects demand to increase this year. While the situation remains challenging and the recent pressure on U.S. tariffs have increased, the company expects pre-tax results to be roughly consistent with the 2024 grade.
BMW’s struggle reflects the struggles of other major German automakers. Volkswagen and Mercedes-Benz also reported a decline in profits in 2024, with Volkswagen’s profits down 31% to 12.4 billion euros, while Mercedes-Benz fell 28% to 10.4 billion euros.
Like BMW, both companies are dealing with China’s tough market conditions.
