The Munich-based automaker reported a fall in its first-quarter profit margin in its automotive segment as persistently higher costs weighed on its bottom line and demand for luxury cars in China remained muted.
The German premium automaker's pre-tax margin in the car segment fell to 8.8% from 12.1% a year earlier and below the 9.2% expected by analysts in a company-compiled consensus.
First-quarter revenue dropped slightly despite a 1.1% increase in car sales.
During the pandemic supply chain shortages meant automakers were able to charge higher prices for their vehicles and were able to sell cars coming off lease for more because of strong demand for used cars.
"This year, it will be more important than ever to maintain our strategic course," Chief Financial Officer Walter Mertl said in a statement. "The investments needed in the digital and electric future of our company are the highest they have ever been."
BMW rivals Mercedes Benz (MBGn.DE) and Porsche (P911_p.DE) are also spending heavily as Germany's automakers try to tackle growing competition in the EV market from China and Tesla (TSLA.O).
First-quarter group pre-tax profit fell 18.9% to 4.1 billion euros ($4.40 billion) but beat the 3.9 billion expected by analysts.
Sales of fully electric cars rose 28% to 83,000 vehicles in the quarter.
($1 = 0.9313 euros)
