Cars.co.za report offers interesting insights
Cars.co.za recently launched Industry Report 2026 at its DealerCon summit, offers insight into the forces shaping South Africa’s vehicle market.
- Dealer News
- 22 September 2026
BMW has become one of the first major European vehicle manufacturers to reveal the financial impact of slowing demand in China and growing geopolitical uncertainty, after issuing a profit warning that sent its shares tumbling by around seven percent to their lowest level since late 2020
The warning, which came as a surprise to many analysts, also weighed on shares of fellow German manufacturers Volkswagen and Mercedes-Benz, underlining concerns that the challenges facing BMW are affecting the wider European automotive industry.
Independent automotive analyst Matthias Schmidt told Reuters that BMW's announcement could be "the tip of the iceberg", warning that other manufacturers are "not immune" to the same pressures.
BMW says weakening demand in China, the world's largest vehicle market, together with the impact of ongoing conflict in the Middle East, had forced it to revise its outlook for 2026. The company lowered its expected automotive operating margin to between one and three percent, down from its previous forecast of four to six percent. It also announced further cost cutting measures, including a one off financial impact during the second half of the year.
The revised outlook marks an early challenge for new chief executive Milan Nedeljkovic, who succeeded Oliver Zipse only last month. Analysts at Deutsche Bank says BMW's long standing reputation as one of the sector's most dependable performers had been damaged by the downgrade.
Brokerage Jefferies expects BMW's restructuring to focus primarily on its German operations while accelerating localisation in key markets such as China and North America to help protect profitability. JP Morgan analysts have also suggested that production capacity reductions could be considered, although BMW has not confirmed any specific plans.
The developments reflect broader structural changes across the industry. Volkswagen chief executive Oliver Blume has already warned that Germany's traditional export driven business model is becoming less effective as Chinese manufacturers gain market share in both their domestic market and increasingly across Europe.
With competition continuing to intensify in China, analysts believe European manufacturers face sustained pressure to improve efficiency while adapting their global production strategies.
Cars.co.za recently launched Industry Report 2026 at its DealerCon summit, offers insight into the forces shaping South Africa’s vehicle market.
Nissan has introduced the Tekton, a new compact SUV for the South African market. The model is built on the Renault‑Nissan alliance’s CMF‑B platform and is closely related to the Renault Duster, sharing engines and mechanical components.
At the recent DealerCon 2026, hosted by Cars.co.za automotive excellence was celebrated by honouring top executives in the automotive retails industry.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
Car recalls often raise concern among owners, but the National Automobile Dealers' Association (NADA) says recall campaigns show that manufacturers are accountable and committed to quality, safety and customer care.
Affordability is driving a structural shift in South Africa’s vehicle market, with SUVs gaining significant ground as consumers increasingly seek competitively priced, well-equipped vehicles.
South Africa’s used car market continued to grow during the first half of 2026, despite pressure on household budgets and a 25 basis point interest rate increase in May.