With over 40 new or updated models launching by the end of 2027, the next few years will be among the busiest in BMW’s history. This rapid product rollout follows the company’s largest investment ever made. More than €10 billion has been poured into the Neue Klasse program over the past few years.
BMW is now ready to reap the rewards of this massive undertaking, though it acknowledges that not everything is smooth sailing. Speaking with Automotive News Europe, a senior executive admitted that external factors continue to hurt the company’s profitability. Chief among them is the ongoing tariff dispute between Europe and the United States, which remains a major source of concern.
Board Member for Customer, Brands, and Sales Jochen Goller explained, “The two biggest impacts in terms of profitability at the moment are China and the global tariffs.” He reiterated BMW’s desire for “zero-zero” tariffs, so any progress toward that target would be a step in the right direction.
China is also proving challenging. Demand there dropped 13% to 715,200 units last year, while China’s share in total sales slipped from 32.3% in 2023 to 29.2% in 2024. The downward trend continues in 2025, with sales falling another 15.5% to 318,125 vehicles in the first half of the year. Nevertheless, China remains the largest single market for BMW.
Goller added that the “ramp-up of BEVs should not be a challenge to our profitability.” That makes sense, given that heavy investments in batteries, electric motors, iDrive X, and Panoramic Vision have already been made. Despite those costs earlier in the decade, BMW still managed to remain profitable.
In the same interview, Goller expressed optimism about BMW’s ability to attract more EV buyers in the U.S., even as demand cools. And even if Neue Klasse models don’t capture everyone’s attention, the brand can still rely on a diverse lineup of combustion-powered vehicles. Through the first three quarters of the year, nearly 20% of all BMWs sold in the U.S. were either plug-in hybrids or fully electric.
Source: Automotive News Europe
