According to the financial news app, Germany's luxury automaker BMW saw a 61% decline in third-quarter profit, below market expectations, due to a drop in sales in China and brake issues, but the company stated it is hopeful to meet the adjusted full-year financial outlook.

According to data released on Wednesday, BMW's third-quarter operating profit was 1.7 billion euros (equivalent to 1.82 billion dollars), a 61% decrease from the 4.352 billion euros in the same period last year. Analysts had previously expected an operating profit of 1.8 billion euros.

The automaker's revenue dropped by 15.7% year-on-year to 32.4 billion euros, lower than analysts' expected 34.3 billion euros.

BMW stated that the operating margin for 2024 is still expected to reach 6% to 7%.

BMW's CEO Oliver Zipse stated in a declaration, "After facing significant challenges in the third quarter... in the fourth quarter, we will return to a path of profit growth to achieve our annual goals."

As early as September, BMW had already lowered its full-year performance expectations citing subdued demand in China and issues with a braking system provided by Continental, a German company.

Last month, BMW reported that sales in China in the third quarter dropped by one third.

Competitors Volkswagen and Mercedes-Benz are also facing the challenge of declining sales in China.

It is reported that Volkswagen's operating margin in the third quarter dropped to 3.6%, the lowest level in over four years. Sales decline in the Chinese market, increasingly fierce competition in the European market, and demand has not yet recovered to pre-pandemic levels, leading Volkswagen to issue profit warnings twice in the second half of this year.

In the third quarter, Mercedes-Benz's net income fell by 54% year-on-year to 1.72 billion euros, below the estimated 2.5 billion euros. Mercedes-Benz has twice lowered its full-year profit margin target for the third quarter ending in September, attributing the decrease in profit and margin to the increasingly weak demand for luxury cars in the Asian market.