BMW's overall revenue fell by 0.7% to €36.9 billion, with net profit dropping nearly 9% to €2.7 billion, largely due to increased competition in China.

Despite a one-third increase in electric vehicle deliveries, BMW's profits before taxes and interest decreased by nearly 11% to €3.9 billion, resulting in a profit margin of 8.4%.

Looking ahead, BMW expects improvements in the third quarter, partly driven by the launch of the new 5 Series model.

Volkswagen, on the other hand, has confirmed its revenue forecast for a 5% increase this year but highlighted the necessity for significant cost management in the latter half of 2024.

Volkswagen's revenue rose by 4.1% to €83.3 billion, despite a reduction in vehicle sales, thanks to strong performance in financial services.

However, Volkswagen reported a significant decline in earnings, with a net profit of €3.63 billion for Q2 2024, down 4.2% year-on-year.

The company has revised its operational margin target downward to between 6.5% and 7% for the year, reflecting ongoing challenges.

Volkswagen is also facing substantial costs related to ongoing layoffs, estimated at around €900 million, as part of efforts to cut personnel costs by 20% in administration.

Both automakers are grappling with weak sales in China, with Volkswagen experiencing a 19% drop in its primary market, while BMW's deliveries fell over 4%.

These challenges are not isolated, as other automotive manufacturers like Stellantis and Renault have also reported declines in net profit, indicating broader industry struggles.

Auto suppliers are similarly facing economic pressures, with companies like ZF Friedrichshafen reporting a significant profit drop, further complicating the landscape for automakers.