CHINA: German automaker BMW is seeking to regain momentum in China’s electric vehicle (EV) market with the launch of its Neue Klasse lineup, as the company faces mounting competition from rapidly expanding domestic manufacturers.
The move comes after BMW recorded two consecutive years of declining sales in China, with the company reporting a 30% drop in second-quarter sales this year.
What is BMW’s strategy to revive sales?
BMW plans to introduce its first Neue Klasse model for the Chinese market, the iX3 electric SUV, in November as part of a broader effort to strengthen its position in the world’s largest EV market.
The company hopes the new generation of electric vehicles will help reverse declining sales and improve its competitiveness against Chinese rivals.
Why are Chinese automakers gaining market share?
Industry analysts say Chinese manufacturers such as Nio, Xiaomi, Zeekr and Aito have accelerated product development, introducing technologically advanced EVs in significantly shorter development cycles than traditional global automakers.
Consumers in China are increasingly prioritising intelligent driving systems, digital connectivity and other smart features offered by domestic brands over the engineering heritage traditionally associated with European manufacturers.
How significant is the shift in China’s EV market?
According to Global Mobility data, fully electric vehicles account for 46% of vehicle sales in China, while only about 5% of BMW’s sales in the country are fully electric.
BMW’s sales declined in both 2024 and 2025, while other German premium manufacturers have also reported falling demand. Mercedes-Benz sales dropped 28% in the first half of the year, while Audi recorded a 19% decline over the same period.
What concerns have investors raised?
Some investors and analysts have argued that BMW underestimated the pace of change in China’s automotive market.
A leading shareholder said the company had not fully anticipated the rapid transformation of consumer preferences and the speed at which Chinese competitors have expanded their technological capabilities.
BMW, however, said its senior management has extensive experience in China and that its market strategy places greater emphasis on digital services, advanced connectivity and features tailored to Chinese consumers.