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BMW in 2025: Q1 Performance, EV Growth, and Future Models

General Report April 28, 2025
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TABLE OF CONTENTS

  1. Summary
  2. BMW Group Q1 2025 Sales Performance
  3. BMW Model Launch: 2025 X3 blends luxury with performance
  4. Motorsport Initiatives: M2 Racer ready for 2026 season
  5. Upcoming BMW Models: EV successors and halo cars
  6. Conclusion

1. Summary

  • As of April 28, 2025, BMW Group's performance in Q1 2025 presents a mixed landscape characterized by a slight decline in global deliveries alongside a remarkable surge in electric vehicle (EV) sales. Specifically, global deliveries totaled 586, 149 units, reflecting a 1.4% decrease compared to the previous year, predominantly due to weakened demand in China. However, outside of this crucial market, the company's growth story remained robust, with a 6.2% increase in Europe and a 4.0% rise in the United States. Notably, India emerged as a bright spot with its best-ever Q1 sales performance, as overall demand for luxury vehicles remains resilient.

  • The significant growth in EV sales, highlighted by a 32.4% increase year-on-year to 109, 516 units, underscores BMW's strategic pivot towards electrification. With a staggering 64.2% rise in EV sales in Europe, the BMW brand's commitment to sustainable mobility is evident. The introduction of fully-electric models, particularly the MINI variants, has also enriched the EV segment's performance, reinforcing consumer confidence in BMW's electrification initiative.

  • In parallel with its sales performance, BMW unveiled the highly anticipated 2025 X3, which exemplifies the brand's ambition in luxury SUV design. Engineered for both performance and efficiency, the X3 integrates advanced features and versatility, appealing to a broad audience, especially in burgeoning markets like Zimbabwe. Furthermore, the company's future trajectory includes the introduction of the entry-level M2 Racer for the 2026 motorsport season, symbolizing its dedication to high-performance racing.

  • BMW's future model roadmap reveals plans for the next-generation 1 Series i1 EV, set to launch around 2028, and a rumored halo M model intended to evoke the legacy of the iconic M1. These upcoming models signal a strategic commitment to balancing traditional performance aspirations with modern electrification trends. As the automotive landscape continues to evolve, BMW's diverse offerings aim to strengthen its competitive position.

2. BMW Group Q1 2025 Sales Performance

  • 2-1. Global deliveries and year-on-year change

  • In the first quarter of 2025, the BMW Group reported global deliveries of 586, 149 vehicles, marking a decrease of 1.4% compared to the same period in the previous year. This decline was primarily attributed to sluggish demand in China, where the luxury auto market faced significant headwinds. However, outside of China, the performance was considerably more robust, with growth recorded in key markets: Europe saw a 6.2% increase in deliveries, while the U.S. market experienced a 4.0% rise. Overall, excluding China, deliveries grew by 5.9%, demonstrating strength in other regions despite challenges in the Asian market. Notably, the BMW brand alone delivered 520, 142 units, indicating a notable demand for its offerings.

  • 2-2. Electric vehicle (EV) sales growth

  • The BMW Group experienced a significant surge in electric vehicle (EV) sales during the first quarter of 2025, reflecting the company’s commitment to electrification. Fully-electric vehicle deliveries reached 109, 516 units, which represents an impressive growth of 32.4% year-on-year. This momentum was particularly pronounced in Europe, where sales increased by 64.2%, highlighting strong consumer adoption of EV technologies. The BMW brand achieved a 9.9% year-on-year sales growth for its fully-electric models, delivering 86, 449 BEVs in this period. The success of the fully-electric MINI variants also contributed to the overall positive performance in the EV sector, with one out of every three MINIs sold in Europe being an electric model.

  • 2-3. Regional performance: Europe, US, China, India

  • BMW’s regional performance varied significantly across markets in Q1 2025. In Europe, the company capitalized on strong demand, achieving a growth rate of 6.2%. The upward trajectory in the U.S. also contributed positively, with a 4.0% increase in deliveries. Conversely, the market in China faced challenges that led to a notable decline in sales, impacting overall global delivery numbers. In India, the BMW Group exhibited a bright spot, recording its best-ever Q1 sales performance, with deliveries rising by 6.36% year-on-year. BMW alone sold 3, 764 units, while the luxury EV segment saw explosive growth, highlighted by an increase of over 200% in EV registrations compared to the previous year, driven by the success of the new BMW iX1 Long Wheelbase. This regional variance underscores the differentiated market dynamics at play and the strategic adjustments required by BMW as it navigates the global landscape.

3. BMW Model Launch: 2025 X3 blends luxury with performance

  • 3-1. Key features of the 2025 X3

  • The 2025 BMW X3 is a prominent entry in the luxury SUV market, designed to compete with established models such as the Mercedes-Benz GLC, Audi Q5, and Volvo XC60. One of its hallmark features is a 2.0-litre 4-cylinder turbodiesel engine, paired with a mild hybrid system, delivering 145 kW of power and 400 Nm of torque. This configuration strikes a notable balance between robust performance and enhanced fuel efficiency, with a claimed consumption figure of 6.2 L/100 km. In practical driving scenarios, drivers have reported real-world averages of around 6.6 L/100 km, making it a commendable option for various driving conditions. The integration of BMW's xDrive all-wheel-drive system further enhances traction on diverse terrains, which is especially beneficial for navigating both urban environments and rural roads. With its stiffer suspension and stylish 21-inch alloy wheels in the M Sport trim, the X3 offers an engaging driving experience while maintaining agility, despite the potential compromise in comfort on less maintained surfaces.

  • 3-2. Target market positioning

  • The positioning of the 2025 BMW X3 is precisely crafted to attract professionals and business owners who prioritize a fusion of luxury, performance, and utility. Particularly within markets such as Zimbabwe, where the vehicle's attributes align closely with the preferences of affluent consumers, the X3 offers a pragmatic approach to luxury. Its ample storage capacity—570 litres expandable to 1, 700 litres with rear seats folded—caters to families and outdoor enthusiasts who require flexibility for travel and leisure activities. Trends in consumer behavior suggest that potential buyers not only seek a prestigious badge but also consider factors such as maintenance costs and fuel efficiency, especially in regions with challenging road conditions. As such, the BMW X3 effectively aligns itself with buyers’ expectations by combining dynamic driving capabilities with practical functionality.

  • 3-3. Production and availability

  • The 2025 BMW X3 is manufactured in South Africa, reinforcing BMW's commitment to local markets and production efficiency. As of April 2025, units are available for sale, and the model has demonstrated a positive reception, particularly among buyers looking for luxury SUVs that deliver not only performance but also practicality. Given the growing demand for such vehicles, BMW has strategically positioned the X3 to be widely available at their dealerships, albeit market constraints—such as fewer dealership locations outside urban centres in regions like Zimbabwe—may pose challenges for prospective buyers. Consumers are advised to consult local dealerships for information on stock availability and potential waiting periods, especially in areas where premium vehicles may not be as readily accessible.

4. Motorsport Initiatives: M2 Racer ready for 2026 season

  • 4-1. M2 Racing specifications and powertrain

  • The BMW M2 Racing, set to debut in the 2026 motorsport season, is engineered as an entry-level racecar primarily for private customer teams. This model features a newly designed 2.0-liter four-cylinder turbocharged powertrain that produces 308 horsepower (230 kW / 313 PS) and 420 Nm (310 lb-ft) of torque. Notably, this is a departure from the standard M2's twin-turbo 3.0-liter six-cylinder engine, which offers 473 hp and 600 Nm. The shift to a smaller engine reflects a focus on both performance and accessibility, aiming to make competitive racing more attainable without exorbitant costs.

  • The design ethos of the M2 Racing pays homage to the iconic E30 M3, known for its success in the DTM and European Touring Car Championship in the late 1980s and early 1990s. By adopting a four-cylinder setup reminiscent of that era, BMW is not only celebrating its history but also optimizing racing dynamics for this new entry-level racer.

  • 4-2. Chassis and suspension upgrades

  • To enhance its racing capabilities, the M2 Racing is equipped with a significantly upgraded chassis. Key features include a KW suspension system tailored for motorsport applications, which provides greater control and stability during high-speed maneuvers. Additionally, the vehicle includes adjustable motorsport anti-roll bars and BMW M Compound brakes, optimizing its performance under racing conditions.

  • A full FIA-homologated roll cage reinforces the safety structure, ensuring compliance with rigorous safety standards while safeguarding the driver during competition. The interior is stripped for weight reduction but maintains practical features that facilitate an engaging racing experience, including a single Sabelt GT-AM racing bucket seat and options for passenger accommodation.

  • 4-3. Role in BMW’s motorsport strategy

  • The introduction of the M2 Racing firmly establishes BMW’s commitment to enhancing its presence in motorsport by offering more accessible racing options for private teams. With a starting price of €98, 000 ($111, 100), the M2 Racing is positioned significantly lower than more advanced models like the BMW M4 GT3, which retails from €415, 000 ($470, 600). This pricing strategy aims to foster a more extensive competitive environment, ultimately broadening BMW's customer base in racing.

  • As BMW M Motorsport continues to develop and test the M2 Racing, the team's focus remains on ensuring the car is ready for the upcoming season. Support will be provided to private teams that choose to compete with this model, reinforcing BMW's collaborative spirit in the motorsport community. The unveiling at the DTM season opener in Oschersleben underscores the strategic marketing move aimed at energizing both the racing arena and attracting new enthusiasts to the brand.

5. Upcoming BMW Models: EV successors and halo cars

  • 5-1. Spiritual successor to i3 EV

  • As of late April 2025, BMW is planning to introduce a spiritual successor to its previously released i3 model. The i3, which was a notable venture into the compact electric vehicle market, ceased production in 2023 amid mixed reviews regarding its design and practicality. Insights from BMW officials indicate a more calculated approach for the upcoming model, tentatively referred to as the i1. This new electric vehicle (EV) aims to combine impressive technology with affordability and reliability, addressing past criticisms. Reports suggest that production for the i1 could begin around late 2027 or early 2028, coinciding with the discontinuation of the current 1 Series. By focusing on advanced electric architecture from the Neue Klasse design framework, the i1 is expected to offer greater efficiency and performance in line with market expectations.

  • 5-2. Next-generation 1 Series i1 EV roadmap

  • The next-generation 1 Series, likely designated as the i1, is actively in development with a target launch slated for 2028. This vehicle is anticipated to be offered as an all-electric alternative to the gas models, ensuring BMW remains competitive in the compact car segment. According to Bernd Koerber, BMW's Senior Vice President of Brand and Product Management, maintaining an entry-level EV is crucial for the brand’s growth, particularly in key markets across Europe where compact vehicles are often highly sought after. The i1 is expected to leverage the flexibility of the Neue Klasse platform, sharing components with the next generation Mini, thereby making it both cost-effective and innovative. The strategic decision underscores BMW's commitment to integrating electrification throughout its vehicle lineup while appealing to younger drivers eager for sustainable mobility.

  • 5-3. Secret halo model under the M sub-brand

  • BMW is reportedly in the process of developing a new halo model under its M division, designed to recapture the allure and performance ethos of the original M1. This prospect comes at a time when there is a growing market appetite for premium, limited-production sports cars. While details remain scarce, it is understood that this model aims to blend modern engineering with classic design elements reminiscent of the M1. According to Sylvia Neubauer, Vice President of customers, brand, and sales at BMW M, the goal is to create ultra-limited editions that resonate with enthusiasts. This model's launch is still under deliberation, but it is intended to enhance BMW's brand prestige, ideally positioning it against competitors like Porsche, although creating a vehicle with such potential will require perfect execution. The performance characteristics and design are being closely monitored, suggesting that an unveiling could take place in the near future as designs are finalized.

Conclusion

  • In conclusion, BMW's overall delivery decline in Q1 2025, closely followed by a significant uptick in EV sales, highlights a complex, yet resilient narrative in the face of global market headwinds. The successful launch of the 2025 X3 illustrates the brand's ongoing pursuit of excellence in luxury and performance, while the emphasis on EV models reflects an alignment with market shifts toward sustainability.

  • Looking ahead, BMW's strategy will hinge on its ability to transform the current surge in EV demand into long-term profitability. This includes addressing the fluctuating dynamics of regional markets, particularly in China, where challenges remain pronounced. The planned introductions of innovative models such as the i1 EV and engaging motorsport entries, including the M2 Racer, showcase BMW’s commitment to sustaining its brand allure while appealing to a broader consumer base.

  • For stakeholders and enthusiasts, the evolution of BMW's electrification roadmap, regional market adaptation strategies, and the diversification of its vehicle lineup will serve as crucial indicators of the company's future trajectory. As the automotive industry progresses into a new era, where electrification and performance converge, BMW's strategic execution will be pivotal in defining its success and maintaining its esteemed position within the competitive landscape.

Glossary

  • BMW Group: The BMW Group is a global automotive company known for its luxury vehicles and motorcycles, headquartered in Munich, Germany. As of April 2025, it is focusing on expanding its electric vehicle (EV) offerings and enhancing performance through its various models, including the newly launched BMW X3 and upcoming M2 Racer.
  • Q1 2025: Q1 2025 refers to the first quarter of the year 2025, covering the months of January to March. In this period, the BMW Group reported a slight decline in global deliveries but notable growth in EV sales, reflecting the company's ongoing shift toward electrification.
  • Global Deliveries: Global deliveries denote the total number of vehicles sold by the BMW Group across all markets during a specific timeframe. In Q1 2025, this figure totaled 586, 149 units, showing a 1.4% decrease from the previous year, largely due to lower demand in China.
  • EV Sales: EV sales refer to the number of electric vehicles sold within a given period. BMW reported a 32.4% increase in EV sales for Q1 2025, indicating a significant shift toward electric mobility, particularly in markets like Europe.
  • BMW X3: The 2025 BMW X3 is a luxury SUV that integrates strong performance with advanced technology. It was launched with features like a 2.0-litre 4-cylinder turbodiesel engine and a mild hybrid system, targeting affluent consumers looking for luxury combined with utility.
  • M2 Racer: The M2 Racer is an upcoming entry-level racecar set to debut in the 2026 motorsport season. It features a 2.0-liter four-cylinder turbocharged engine and is designed to be more accessible for private racing teams, distinct from the higher-performing M2 models.
  • 1 Series i1: The 1 Series i1 is planned as the next generation of BMW's compact electric vehicles, designated for launch around 2028. It aims to deliver efficient electric mobility while addressing past critiques of the original i3 model.
  • Halo Car: A halo car is a high-performance vehicle that is designed to enhance the brand's image and attract attention from consumers. BMW is reportedly developing a new halo model within its M sub-brand, aiming to evoke the legacy of the iconic M1 while appealing to discerning sports car enthusiasts.
  • BEV: BEV stands for Battery Electric Vehicle, which is a type of electric vehicle that operates exclusively on electric power without any gasoline engine. In Q1 2025, BMW saw a rise in BEV sales, further solidifying its commitment to electrification in the automotive market.
  • xDrive: xDrive is BMW's all-wheel-drive system that enhances vehicle traction and stability on various terrains. It is incorporated in the 2025 X3 to improve performance in both urban and rural driving conditions.
  • Neue Klasse: Neue Klasse is BMW's new vehicle architecture designed to support future electric models. It emphasizes efficiency and performance, showcasing the company's commitment to transitioning toward sustainable mobility solutions.

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