Shares in BMW tumbled to their lowest level in more than five years on Wednesday after the German automaker issued a profit warning, slashing its full-year outlook.
The company attributed the downgrade to a severe slowdown in Chinese demand and supply chain disruptions stemming from the ongoing war in Iran.
The sharp repricing in BMW stock underscores the vulnerability of legacy European automakers caught between a structural demand collapse in their most critical growth market and escalating geopolitical risks that threaten to fracture global supply chains.
The market reaction suggests investors are pricing in a prolonged period of margin compression and volume losses.
BMW’s guidance cut highlights the intensifying pressure on the automotive sector.
The company cited a dual squeeze: a persistent downturn in the Chinese automotive market, which has been a primary profit driver for years, and the logistical and operational disruptions caused by the war in Iran.