BMW profits fall as China sales drop

A drop in sales in China and investment in new vehicles has hit German luxury car maker BMW's second-quarter profits.

The Munich-based company said that net profits fell to 1.75bn euros ($1.92bn; £1.23bn) in the April-to-June quarter, down from 1.77bn euros a year earlier.

Sales in China, the world's biggest car market, fell after a decade of growth.

"If conditions on the Chinese market become more challenging, we cannot rule out a possible effect on the BMW Group's outlook," the carmaker said.

BMW said that sales in China had fallen in May and June.

The company also said there had been a shift in sales towards lower-margin compact vehicles.

BMW is refreshing its model range and has already unveiled a new 7 Series which will go on sale this autumn.