{"id":43262,"date":"2025-09-07T11:34:59","date_gmt":"2025-09-07T11:34:59","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/07\/bmw-bets-on-neue-klasse-evs-to-revive-growth-in-china-after-sales-slump-report\/"},"modified":"2025-09-07T11:34:59","modified_gmt":"2025-09-07T11:34:59","slug":"bmw-bets-on-neue-klasse-evs-to-revive-growth-in-china-after-sales-slump-report","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/07\/bmw-bets-on-neue-klasse-evs-to-revive-growth-in-china-after-sales-slump-report\/","title":{"rendered":"BMW bets on Neue Klasse EVs to revive growth in China after sales slump: report"},"content":{"rendered":"
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BMW expects its all-electric Neue Klasse series to reignite growth in China<\/a>, its largest market, following a significant drop in sales in the first half of 2025.<\/p>\n

This week, the German manufacturer introduced its first Neue Klasse model, marking the beginning of a massive portfolio makeover aimed at better competing with local rivals and regaining profitability.<\/p>\n

Slump in China sales<\/h2>\n

BMW, like several other European automakers, has struggled to gain ground in China, where intense local competition and a weakening property market have weighed on luxury car demand.<\/p>\n

The decline pushed BMW\u2019s sales in the country down 15.5% in the first half of 2025, underscoring the increasingly difficult environment for foreign brands.<\/p>\n

BMW\u2019s Chief Financial Officer Walter Mertl struck an optimistic note despite the downturn in China.<\/p>\n

“We are more than competitive with this product,” Mertl told Reuters. “With increasing availability of the Neue Klasse, we will see growth in China again.”<\/p>\n

Launch of the Neue Klasse iX3<\/h2>\n

Ahead of the 2025 IAA car show in Munich, BMW on Friday unveiled the Neue Klasse iX3, an electric sport utility vehicle set to debut in China by mid-2026. <\/p>\n

The launch marks a key step in the automaker\u2019s efforts to shift its portfolio toward electrified transportation.<\/p>\n

The timing underscores the rising pressure on international automakers, as the IAA has become a battleground for defending market share in Europe against a rapidly strengthening Chinese presence. <\/p>\n

At the same time, domestic manufacturers in China continue to outpace foreign luxury rivals, leveraging lower price points and agile strategies to dominate both their home market and challenge incumbents abroad.<\/p>\n

Cost and margin improvements<\/h2>\n

An important part of BMW’s strategy is cutting down on battery costs. <\/p>\n

Batteries in the Neue Klasse vehicles cost 40% to 50% less than in the company\u2019s current models, Mertl said. <\/p>\n

Lower costs are expected to be a factor in lifting profits for the electric lineup as a whole.<\/p>\n

With the iX3 50, BMW could reach margin parity with combustion engine vehicles as early as 2026, Chief Financial Officer Walter Mertl said.<\/p>\n

BMW is forecasting an automotive EBIT margin of 5% to 7% in 2025, with a longer-term goal of 8% to 10%. <\/p>\n

The company also plans to phase out its older models by the end of the decade as the Neue Klasse series takes over as the backbone of its portfolio.<\/p>\n

Impact of US tariffs<\/h2>\n

BMW also faces hurdles in the United States, where it operates its largest production plant.<\/p>\n

High import tariffs remain a drag on profitability, with duties expected to shave 1.25 percentage points off BMW\u2019s profit margin in 2025, Mertl said.<\/p>\n

The United States and the European Union have agreed to eliminate tariffs on US industrial products in exchange for reducing tariffs on European cars to 15% from the current 27.5%. <\/p>\n

Automakers expect the new rate to be applied retroactively to August 1, which would provide relief for firms like BMW that depend heavily on cross-border production.<\/p>\n<\/p>\n

The post BMW bets on Neue Klasse EVs to revive growth in China after sales slump: report<\/a> appeared first on Invezz<\/a><\/p>\n

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BMW expects its all-electric Neue Klasse series to reignite growth in China, its largest market, following a significant drop in sales in the first half of 2025. This week, the German manufacturer introduced its first Neue Klasse model, marking the beginning of a massive portfolio makeover aimed at better competing with local rivals and regaining <\/p>\n","protected":false},"author":1,"featured_media":43263,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-43262","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43262"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43263"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}