In the first nine months of 2024, BMW’s total vehicle deliveries reached 1,754,157. Credit: Kittyfly/Shutterstock.

BMW has reported a net profit of €476m ($508.73m) in the third quarter of 2024, an 83.8% drop from €2.93bn during the same period in 2023.

During the third quarter, BMW’s revenue also fell by 15% to €32.4bn, compared to €38.45bn in the year-ago period.

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The company cited “extraordinary challenges” including technical actions related to the integrated braking system (IBS) and a weakened demand in China as key factors impacting its financial results.

Additionally, BMW set aside provisions in the high three-digit million-euro range for warranty obligations linked to the IBS, further affecting the quarter’s profitability.

In the first nine months of 2024, BMW’s total vehicle deliveries reached 1,754,157, marking a 4.5% decrease from the previous year’s figure of 1,836,563 automobiles.

The third quarter alone saw a 13% drop in deliveries, with 540,881 BMW, MINI, and Rolls-Royce vehicles reaching customers, down from 621,699 automobiles in the same quarter of 2023.

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The performance in China was particularly concerning, with sales plummeting by 29.8% to 147,691 units.

This decline significantly contributed to a 24.1% decrease in sales across the entire Asia region, where total sales amounted to 205,987 units.

Other major markets also experienced varying degrees of sales declines.

Europe saw a 1% decrease with 219,269 units sold, while the Americas faced a 10.7% drop, with sales totalling 101,256 units.

Within the Americas, the US market specifically saw a 9.2% reduction in sales to 83,412 units.

For the nine-month period leading up to the third quarter, BMW reported revenues of €105.96bn, a 5.8% decrease year on year.

Net profits for this period also fell sharply by 35.8% to €6.13bn, down from €9.55bn during the same timeframe in 2023.

BMW chairman of the board of management Oliver Zipse said: “After the extraordinary challenges in the third quarter, we are looking ahead: In the fourth quarter, we are back on track for stronger earnings in order to achieve our annual targets, despite planned high upfront expenditures.

“We are striking a balance between securing short-term earnings and long-term success: This year we are investing more than ever in new products, technologies and our plants, so that we can continue the BMW success story with the NEUE KLASSE from next year onwards.”