# BMW's Sales and Profits Sharply Decline in China

Due to difficulties in the Chinese market, German automaker BMW's sales and revenues are declining significantly. Despite the company's shares currently being undervalued compared to their intrinsic value, uncertainty in the market is limiting investor activity.

BMW expects to sell approximately 500,000 vehicles in China this year. For comparison, at its best, the company sold up to 800,000 vehicles annually in the Chinese market. If the trend continues, sales could drop to 300,000 by 2030. Profits are also declining sharply: in 2023, profits from the Chinese market amounted to approximately 5 billion euros, while this year they are expected to fall below 1 billion euros.

The main reasons are the strengthening of Chinese electric vehicle manufacturers, price competition, and geopolitical uncertainty. In September, BMW's new head Milan Nedeljković will present the company's plan. According to analysts' assessments, BMW will need to reduce costs and review its business in order to maintain profitability within the 6%-8% range. Until the company presents a clear plan, problems in the Chinese market will continue to impact investor interest.

Source: Investing.com