After five years of relentless sales improvement, BMW is warning investors that harder times may be ahead, and that China’s apparently limitless ability to provide ever-fatter profits may be coming to an end.

In 2014, BMW’s earnings before interest and taxes (EBIT) soared 14 per cent to 9.12 billion euros ($9.9 billion), but at the annual press conference, the company warned that 2015 sales and profit growth will slow because of an ageing model line-up and the high cost of new technology to meet tough fuel consumption regulations in Europe and the U.S.

At the press conference, outgoing CEO Norbert Reithofer had this to say, which should have rocked investors back on their heels.

“Many uncertainties remain: important markets like China are losing momentum,” Reithofer said.

BMW is believed to make about 50 per cent of its annual profits in China.

The warning had little effect on the BMW stock price, which closed the week at close to 120 euros, after a spectacular 50 per cent run-up since last October.

Bernstein Research analyst Max Warburton said investors better take heed.

BMW 2 Series Active Tourer