BMW Sales Plunge in China as New EV Strategy Faces Uphill Battle

BMW is facing a severe downturn in China, its largest single market, reporting a 30% plunge in sales for the second quarter. The German luxury automaker's struggles are underscored by a recent profit warning—its third in less than three years—partly blamed on its performance in the region, raising concerns about its strategy in the world's most competitive electric vehicle landscape.

Market Share Under Pressure

The challenges for BMW reflect a broader trend impacting German premium car manufacturers. According to a Reuters report, sales for rivals have also fallen sharply in the first half of this year:

• Mercedes-Benz sales dropped 28%.
• Volkswagen's Audi brand saw a 19% decline.

BMW's sales in China had already fallen in both 2024 and 2025. The company's exposure to the EV transition is stark: fully electric models account for only about 5% of its sales in a market where EVs now represent 46% of all vehicle sales, based on data from Global Mobility.

'Neue Klasse' Platform Arrives Late

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BMW is pinning its hopes on its long-awaited "Neue Klasse" EV platform to reverse its fortunes, with the first model for China, the iX3 SUV, scheduled for a November launch. However, some analysts believe the initiative may be too late to make a significant impact. Yale Zhang, managing director at research firm Automotive Foresight, told Reuters that the platform could have been a "game-changer" two years ago but will now find it "hard to stand out."

Chinese competitors like Nio and Xiaomi are developing advanced EVs in as little as 18 months, roughly twice the speed of traditional automakers. The launch of BMW's iX3 was reportedly delayed after the company switched to Chinese partner Momenta for assisted-driving technology, a feature now considered essential by many local buyers.

Shifting Consumer Tastes

The traditional appeal of German engineering and combustion-engine heritage is waning among Chinese consumers, who increasingly prioritize cutting-edge digital features, connectivity, and in-car technology offered by domestic brands. "Chinese consumers no longer buy into that," said Wang Xianbin, vice president of the Gasgoo Research Institute.

This shift is also reflected in pricing. According to Shanghai consultancy LandRoads, BMW's average transaction price in 2025 was 341,000 yuan (about $50,200), below local premium brands such as Nio. Hendrik Schmidt of DWS, a top-10 BMW investor, noted that the scale of the challenge in China had been "considerably underestimated" by the company's leadership. In response, a BMW spokesperson stated that its management has extensive China experience and is pursuing a country-specific strategy focused on digital services and rear-seat comfort.