Volkswagen and other carmakers have warned that trade tensions risk dragging the global economy into a recession as the fallout starts to hit consumers.

BMW plans to increase sales of electric and plug-in hybrids by 30% every year until 2025 to help meet incoming stringent emission regulations in the EU, prompting the carmaker to accelerate the rollout of battery models.

BMW’s automotive car division swung to a loss for the first time in a decade as car prices slumped and a legal provision over alleged collusion ballooned to €1.4bn.