The Bavaria-based group saw its net profits slip to 1.75 billion euros ($1.92 billion) from April to June against 1.77 billion euros for the same period a year ago.
Germany’s Volkswagen, which recently pipped Toyota for the world’s biggest automaker title, last week lowered its global sales forecast for 2015 citing falling demand from China and other key markets.
BMW said the profit fall was a “minor dip” caused by higher personnel costs, increased expenditure on new product start-ups and higher proportion of sales of lower margin compact vehicles.
In a two-year study, the company surveyed more than 3,000 consumers, and findings show that young Chinese buyers are seeking for technological features and sustainable vehicles more than stretched cars.
One of the concerns faced by the automaker, is the stiff competition in China, which urges the company to bring upgraded features on its old sedans, such as 5 series and 7 series.
Management nevertheless continues to expect a solid rise in pretax group profit for the full year and significant revenue growth at its automotive segment.
Rival Audi cut its global sales forecast last week because of slumping demand in China, where economic growth is slowing.
BMW shares traded down 1.6 percent at 90.13 euros in morning trading in Europe. The company has already unveiled a new 7-series. The country’s auto market has been the key growth driver for luxury-car makers in recent years.
BMW said the return on sales in its automotive division fell to 8.4 per cent, from 11.7 per cent a year earlier and below the 10.7 per cent margin reported by rival Mercedes-Benz Cars and the 9.9 per cent earned by Audi.
Overall turnover grew by a fifth to almost 24 billion euros, exceeding market expectations.
The quarterly report is BMW’s first under CEO Harald Krueger, 49, who succeeded Norbert Reithofer in the top post in May.
Renewing models is costly but pays off if the new version sells better than its competitors.
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