BMW vs Volvo Cars: Revenue, Profit and Business Model
BMW reported ~$150.8B of revenue in FY2025 and ~$8.2B of net income. Volvo Cars reported ~$35.7B of revenue in FY2025 and ~$17.4M of net income.
Latest financial snapshot
BMW
- Latest revenue
- ~$150.8B (FY2025)
- Net income
- ~$8.2B
- Net margin
- 5.5%
- Revenue growth
- +4.7% a year, FY2021–FY2025
Volvo Cars
- Latest revenue
- ~$35.7B (FY2025)
- Net income
- ~$17.4M
- Net margin
- 0.0%
- Revenue growth
- +6.1% a year, FY2021–FY2025
Financial summary
BMW
BMW's financial story has turned from peak to reset in three years. Revenue reached ~$176 billion (EUR155.5 billion) in 2023 with a 9.8% automotive EBIT margin, then fell to ~$161 billion (EUR142.4 billion) in 2024 and ~$151 billion (EUR133.5 billion) in 2025 as China pricing, tariffs and currency weighed. Group profit before tax still stayed above ~$11.3 billion (EUR10 billion) in 2025 (~$11.6 billion (EUR10.236 billion), 7.7% margin), helped by ~$2.82 billion (EUR2.5 billion) of cost cuts and a stable Financial Services business. 2026 is weaker: H1 revenue fell 8.0% to ~$70.4 billion (EUR62.3 billion), Group EBT dropped 29.4% to ~$4.52 billion (EUR4.0 billion), and BMW now guides to a 1-3% automotive EBIT margin and automotive free cash flow above ~$2.82 billion (EUR2.5 billion). Shareholder returns continue through a EUR4.40 dividend for 2025 and a ~$2.26 billion (EUR2 billion) buyback due to finish by November 2026.
Volvo Cars
Revenue fell from ~$40 billion (SEK 400.2 billion) in 2024 to ~$35.7 billion (SEK 357.3 billion) in 2025 as retail sales dropped to 710,000 cars. Adjusted EBIT was ~$1.25 billion (SEK 12.5 billion) (3.5% margin), but reported EBIT was about $30 million (SEK 0.3 billion) after charges including an ~$1.14 billion (SEK 11.4 billion) impairment, and the net result for the year was a loss of about $300 million (SEK 3.0 billion). Free cash flow was ~$240 million (SEK 2.4 billion) and the company ended 2025 with a net cash position of ~$2.69 billion (SEK 26.9 billion). In Q2 2026, revenue was ~$7.77 billion (SEK 77.7 billion) (~$9.35 billion (SEK 93.5 billion) a year earlier), EBIT was ~$80 million (SEK 0.8 billion) (1.1% margin) and retail sales were 171,501 cars, down 5.6%. The company said it reached its ~$500 million (SEK 5 billion) annual cost-saving target six months early.
Revenue and profit by year
BMW
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$150.8B | ~$8.2B | 5.5% | -6.3% | Source |
| FY2024 | ~$160.9B | ~$8.2B | 5.1% | -8.4% | Source |
| FY2023 | ~$175.7B | ~$12.8B | 7.3% | +9.0% | Source |
| FY2022 | ~$161.1B | ~$20.3B | 12.6% | +28.2% | Source |
| FY2021 | ~$125.7B | ~$14B | 11.1% | — | Source |
Volvo Cars
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$35.7B | ~$17.4M | 0.0% | -10.7% | Source |
| FY2024 | ~$40B | ~$1.5B | 3.8% | +0.2% | Source |
| FY2023 | ~$39.9B | ~$1.3B | 3.3% | +21.0% | Source |
| FY2022 | ~$33B | ~$1.6B | 4.7% | +17.1% | Source |
| FY2021 | ~$28.2B | ~$1.2B | 4.3% | — | Source |
Where the revenue comes from
BMW
- Automotive
~$133B (EUR117.6B) segment revenue (2025)
Sales of BMW, MINI and Rolls-Royce cars, parts and services; the segment's EBIT margin was 5.3% in 2025.
- Financial Services
~$45B (EUR39.8B) segment revenue (2025)
Leasing, retail loans, dealer financing and insurance; new business volume was ~$74.4B (EUR65.8B) in 2025.
- Motorcycles
~$3.5B (EUR3.1B) segment revenue (2025)
BMW Motorrad bikes, parts and gear; segment EBIT margin was 5.7% in 2025.
Volvo Cars
- Vehicle salesMajority
New cars and SUVs sold through dealers, fleet and online channels.
- Parts, service and accessories
Not disclosed
Aftersales revenue from the car fleet in use.
- Financing and subscriptions
Not disclosed
Financing, leasing and Care by Volvo subscription offers.
Business model and strategy
BMW
How it makes money
BMW makes money by designing, building and selling premium cars at prices that carry a brand premium, then earning a second layer of profit from financing them. In 2025 the Automotive segment (BMW, MINI, Rolls-Royce) generated ~$133 billion (EUR117.6 billion) of revenue, Financial Services ~$45 billion (EUR39.8 billion) and Motorcycles ~$3.5 billion (EUR3.1 billion) before intra-group eliminations.
Growth strategy
Under CEO Milan Nedeljković, BMW's growth plan is narrower and more regional. The group will cut variants (the 2 Series Active Tourer gets no successor), add top-end models such as the first BMW ALPINA car in 2027 and a US-focused SAV above the X7, and launch a compact Neue Klasse EV for Europe in 2028.
Competitive advantage
BMW's advantage rests on brand depth, engineering credibility and a flexible production network. Customers still pay for BMW driving dynamics, M performance models and Rolls-Royce craftsmanship, which supports pricing even when volumes are flat.
Volvo Cars
How it makes money
Volvo Cars earns most of its revenue from selling new cars, mainly SUVs such as the XC60, XC90, XC40/EX40 and EX30, through dealers, fleet sales and online channels. Parts, service, accessories, financing and subscription services add further revenue. Electrified models (battery-electric plus plug-in hybrid) made up 46% of sales in 2025.
Growth strategy
The plan centres on cost reduction, regional production to limit tariff exposure, more parts shared with Geely (from about 10% to 30%), and new electric models such as the EX60 alongside continued plug-in hybrid sales.
Competitive advantage
Volvo's main asset is a brand strongly associated with safety, going back to the three-point seatbelt developed by Nils Bohlin in 1959. It also has a broad electrified lineup, factories in Sweden, Belgium, China and the United States, and access to Geely's purchasing scale and platforms.
Questions about BMW vs Volvo Cars
Which company has higher revenue — Bayerische Motoren Werke AG or Volvo Car AB?
Bayerische Motoren Werke AG reported ~$150.8B (FY2025), while Volvo Car AB reported ~$35.7B (FY2025). By last reported revenue, Bayerische Motoren Werke AG is the larger business, with Volvo Car AB reporting a smaller revenue base.
What is the market cap of Bayerische Motoren Werke AG vs Volvo Car AB?
Bayerische Motoren Werke AG has a market capitalisation of $39.8B. A public market cap figure for Volvo Car AB was not available (it may be privately held).
Which is more financially efficient — Bayerische Motoren Werke AG or Volvo Car AB?
Bayerische Motoren Werke AG generates $976k / employee in revenue per employee, while Volvo Car AB generates $839k / employee. Bayerische Motoren Werke AG shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Bayerische Motoren Werke AG and Volvo Car AB make money?
Bayerische Motoren Werke AG and Volvo Car AB generate revenue in fundamentally different ways. Bayerische Motoren Werke AG: BMW makes money by designing, building and selling premium cars at prices that carry a brand premium, then earning a second layer of profit from financing them. Volvo Car AB: Volvo Cars earns most of its revenue from selling new cars, mainly SUVs such as the XC60, XC90, XC40/EX40 and EX30, through dealers, fleet sales and online channels.
Is Bayerische Motoren Werke AG bigger than Volvo Car AB?
By last reported revenue, Bayerische Motoren Werke AG (~$150.8B (FY2025)) is the larger company compared to Volvo Car AB (~$35.7B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the BMW vs Volvo Cars overview