BMW’s 2026 Mystery: Can the Chinese Market Wait for the New Generation?
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Author | Wang Xiaojuan
Editor | Zhou Zhiyu
BMW's 2025 performance is under pressure, but for the second year in a row, it has won the global luxury car sales championship. The real test will come in 2026—the new generation models must prove themselves in the Chinese market.
According to financial report data, BMW Group achieved annual revenue of 133.453 billion euros in 2025 (about 1.06 trillion RMB), down 6.3% year-on-year; pre-tax profit was 10.236 billion euros, down 6.7% year-on-year; net profit was 7.451 billion euros, down 3.0% year-on-year.
Revenue, pre-tax profit, and net profit all fell year-on-year, but the decline in these three figures was not symmetrical. However, a deeper breakdown shows that BMW’s profit foundation remains solid.
The group's pre-tax profit margin remained at 7.7%, the same as in 2024. The drop in net profit was also significantly smaller than the decline in revenue, indicating that BMW did not rely on heavy discounts to boost sales during the contraction, and per-vehicle profitability remains intact.
BMW officially revealed that in 2025 it achieved a cost reduction of 2.5 billion euros, blocking pressure from both raw materials and tariffs.
The 2025 divergence among the “BBA” trio (BMW, Benz, Audi) is clear: Mercedes-Benz’s global sales fell 10% year-on-year, Audi dropped 2.9%, while BMW slightly increased by 0.5%. In a year when rivals lost ground, BMW managed to hold its position, which is BMW's strongest achievement in 2025.
From a regional perspective, the most prominent feature of BMW’s 2025 global performance is the severe split in regional markets.
The European market performed strongly, with annual sales breaking the one-million mark to reach 1,016,360 vehicles, a 7.3% year-on-year increase; the Americas also recorded stable growth of 5.7% with 508,221 units delivered. Combined, Europe and America sold nearly 100,000 more units, exactly offsetting the volume lost in China.
In contrast, BMW delivered only 625,527 vehicles in China in 2025, a year-on-year decrease of 12.5%, the second consecutive year of decline, and deeper than the drop in 2024. The annual trend shows that in Q4 2025, the decrease widened to 15.9%, indicating a lack of year-end momentum.
The Chinese market shrank for two consecutive years, losing nearly 200,000 car sales and has already fallen back to the level of 2017–2018. The reasons for these losses are obvious: in the 300,000 to 500,000 RMB price range, Aito, Li Auto, and NIO are competing head-to-head with BBA; meanwhile, BMW’s main SUVs—the X3 and X1—are at the end of their lifecycles, with a gap before the new models are released.
However, it is worth noting that BMW's sedan lineup in China still has strong resilience—Series 3 and Series 5 achieved positive growth against the trend, which at least demonstrates that in the sedan market, brand loyalty can still withstand the impact of a price war.
In terms of electrification, BMW is steadily advancing—though it has yet to become the main engine of growth.
Electrification is another relatively lackluster figure. In 2025, BMW’s global pure electric sales were 442,000 units, a year-on-year increase of only 3.6%. In the context of the industry’s rapidly rising new energy penetration rate, this is not eye-catching. The reason is direct: current pure electric models are still based on oil-electric shared platforms; the truly “New Generation” electric architecture has yet to achieve scale. In other words, BMW’s electrification report card won’t really start until after Neue Klasse models are delivered.
For BMW, 2025 is a year of preparation, while 2026 is the year when the New Generation strategy will be fully implemented and delivered.
According to official data, in the European market, 1 in every 3 new pure electric BMW orders is for the new generation iX3—a model just launched. The long-wheelbase iX3, designed specifically for China, will go into production in Shenyang and be launched in 2026. This is seen by outsiders as BMW’s core trump card to reverse its downturn in China.
From a technological reserve perspective, the New Generation platform does have competitive features—self-developed breakthroughs like sixth-generation eDrive electric drive technology, 800V high-voltage architecture, driving control supercomputer, etc., will be installed. A 10-minute charge for a 300km range is already in the industry’s top tier. Meanwhile, the second New Generation model—pure electric BMW i3—will debut globally on March 18, further expanding the product matrix. Insiders say the New Generation BMW iX3 long-wheelbase will make its global debut at the Beijing Auto Show and launch within the year.
This means 2026 is also a big year for BMW products.
According to the plan, BMW Group’s brands—BMW, MINI, and BMW Motorrad—will launch about 20 new or refreshed models, covering almost all segments. The mid-cycle facelift for the 7 Series will also debut globally at the Beijing Auto Show, equipped with the iDrive X system and panoramic vision display.
Industry insiders told Wallstreetcn that BMW's 2025 financial report shows: as long as the ICE (internal combustion engine) business remains stable and profits haven’t collapsed, the Chinese market is the biggest variable and risk point. The title of global sales champion may be glamorous, but the 625,500-unit performance in China is already a wake-up call.
Whether the New Generation can turn things around will not take long to verify. The long-wheelbase iX3 will debut at the 2026 Beijing Auto Show and launch within the year. Its price range and the first month’s orders will be the first answer. BMW’s window is very real: the Chinese market loses sales every year, dealer patience is not unlimited, and consumers' attention will not wait forever for a car that’s “coming soon.” In 2026, the New Generation must move from the PPT into the showrooms.
For this century-old luxury car company, 2026 is not only the product year for the New Generation but also a crucial test of its system resilience, localization ability, and strategic execution.
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