BMW Return on New All-Electric Series to Regain Global Growth | regain growth in China

Photo by Nahi Khabar 24/7 – via Personal Collection

German automaker BMW is pinning its hopes on the launch of its all-electric Neue Klasse series to reverse slowing sales and strengthen its position in the fast-growing electric vehicle (EV) market, particularly in China.

China at the Center of Strategy

BMW’s Chief Financial Officer Walter Mertl said the company expects its upcoming electric SUV, the iX3, to play a pivotal role in reviving growth in China, BMW’s largest single market. The SUV is scheduled to debut in the summer of 2026.
China sales dropped 15.5% in the first half of 2025, but BMW believes the Neue Klasse will restore momentum by offering competitive pricing and performance.

Breakthrough Battery Economics

The Neue Klasse lineup features a new generation of batteries that are 40–50% cheaper to produce, narrowing the profitability gap with conventional combustion-engine models. BMW estimates that by 2026, the iX3 50 variant could achieve profit margins on par with petrol vehicles.

Major Transformation Plan

The Neue Klasse series marks BMW’s most ambitious transformation in decades, with over 40 new models — including electric, hybrid, and combustion versions — planned between 2025 and 2027. Executives describe it as a cornerstone of BMW’s growth roadmap and a direct challenge to rivals Tesla, Mercedes, and other EV leaders.

Financial & Trade Outlook

BMW is targeting an automotive EBIT margin of 5–7% in 2025, with projections of 8–10% in the following years as EV volumes grow. The company also stands to benefit from expected trade concessions between the EU and the United States, which may reduce tariffs on European-made cars.

Rising EV Demand

Despite challenges in China, BMW’s global EV sales continue to climb:

• 11.6% increase in 2024, with 368,523 all-electric units delivered.
• 32.4% growth in electrified vehicles (BEVs & PHEVs) in early 2025, including over 109,000 BEVs in Q1 alone.
• Strong growth across Europe, where EV sales spiked by 36% in January 2025.

Conclusion

BMW is betting big on the Neue Klasse to secure its future in the EV era. With cost breakthroughs, an aggressive product rollout, and growing global demand for electric cars, analysts see a credible path for BMW to return to strong growth — provided it can recapture momentum in China, the world’s most competitive electric vehicle market.