The first variant or model of this new class is the IX3. So many people get frustrated on this program when we talk about a company going after Tesla. Tesla killers.But in the ix3, BMW does see potential to claw back a bit of market share. Stefan. Yeah, absolutely.And, you know, back in the day when Tesla came out with the model three BMW actually lost a lot of drivers to Tesla. So so BMW CEO Oliver Zips is now confident that BMW can win those people back. And you know, the new SUV will be unveiled in Septe ...

Core Viewpoint - The traditional luxury car giants BBA (BMW, Mercedes-Benz, Audi) are collectively facing growth bottlenecks, with declining revenues and profits, particularly in the Chinese market, indicating a deep transformation pain that requires immediate and decisive action to recover and seize future opportunities [1][3][6]. Group 1: Financial Performance - In the first half of 2025, BBA's financial results showed a trend of "two declines and one increase" in revenue, with all three companies experiencing a "full-line decline" in net profits [3][6]. - BMW led with a revenue of €67.685 billion, despite an 8% year-on-year decline; Mercedes-Benz followed with €66.377 billion, suffering the largest revenue drop of 8.6% and a net profit halved; Audi was the only brand with revenue growth, reaching €32.573 billion, but its net profit was only €1.346 billion, one-third of BMW's [3][6]. - The decline in performance has led BBA to lower their profit forecasts, with Audi adjusting its annual revenue target to €65-70 billion and profit margin expectations down to 5-7%; BMW expects a decrease in profit margin to 5-7%; and Mercedes-Benz anticipates lower sales than the previous year, adjusting its return on sales from 6-8% to 4-6% [6]. Group 2: Market Challenges - BBA has collectively lost ground in the Chinese market, which is their most important single market globally, with delivery volumes declining by 15.5% for BMW, 14.2% for Mercedes-Benz, and 10.3% for Audi [5][6]. - The entry-level models of BBA, priced between 200,000 to 400,000 yuan, are facing fierce competition from domestic brands, leading to a decline in both volume and profit [8][9]. - BMW's popular models, such as the X3/X4 and i3/i4, saw delivery declines of 24.6% and 70.8%, respectively, indicating significant pressure in the mid-range segment [8][9]. Group 3: Electric Vehicle Transition - The shift to electric vehicles (EVs) is seen as essential for BBA's recovery, with distinct strategies emerging: BMW is leading, Audi is gaining momentum, while Mercedes-Benz is lagging [11][12]. - Audi reported a 32.3% increase in pure electric vehicle sales, achieving a penetration rate of 12.8% with 101,400 units delivered; BMW's electric vehicle sales reached 220,600 units, up 15.7%, while Mercedes-Benz's sales fell by 14% to 87,300 units [15][16]. - BMW is focused on a clear electric future, with plans for a new generation platform expected to boost electric vehicle sales significantly, aiming for 50% of its sales to be electric by 2035 [16][17]. Group 4: Strategic Adjustments - Audi has adopted a more cautious approach to its electric vehicle strategy, delaying the complete phase-out of combustion engines and planning to launch new internal combustion and hybrid models from 2024 to 2026 [16]. - Mercedes-Benz has adjusted its electric vehicle strategy, aiming for a maximum of 50% of its sales to be new energy vehicles by 2030, while still planning to introduce new electric models [17]. - The BBA's transition to electric vehicles is characterized by a pragmatic return to rationality, facing the dual challenge of accelerating the transition while addressing shortcomings in smart technology [18].

Core Viewpoint - The traditional luxury car giants BBA (BMW, Mercedes-Benz, Audi) are facing significant growth challenges, with declining revenues and profits, particularly in the Chinese market, indicating a critical transformation phase for these companies [1][2][4]. Financial Performance - In the first half of 2025, BBA's financial results showed a mixed performance: BMW led with revenues of €67.685 billion, down 8% year-on-year; Mercedes-Benz followed with €66.377 billion, experiencing the largest revenue drop of 8.6%, and a net profit halved to €26.88 billion; Audi reported revenue growth to €32.573 billion but with a net profit of only €1.346 billion, one-third of BMW's [2][4][8]. - The overall net profit for BBA saw significant declines, with Mercedes-Benz's net profit dropping 55.8%, BMW's down 29%, and Audi's down 37.5% [7][8]. Market Challenges - BBA collectively struggled in the Chinese market, with delivery volumes down 15.5% for BMW, 14.2% for Mercedes-Benz, and 10.3% for Audi, making it the largest single market decline globally for these brands [4][10]. - The entry-level models of BBA are facing intense competition from domestic brands, leading to a decline in both volume and profit margins [9][10]. Strategic Adjustments - BBA has lowered their profit forecasts: Audi revised its revenue target to €65-70 billion with a profit margin expectation of 5-7%; BMW anticipates a decline in its automotive EBIT margin to 5-7%; Mercedes-Benz expects lower sales than the previous year with a revised return on sales (ROS) of 4-6% [4][10]. - The companies are adjusting their strategies towards electric vehicle (EV) production, with BMW leading in EV sales, while Mercedes-Benz has delayed its full electrification target to 2030 [11][16]. Electric Vehicle Transition - Audi reported a 32.3% increase in EV sales, leading BBA, with a total of 101,400 units delivered; BMW's EV sales reached 220,600 units, up 15.7%, while Mercedes-Benz saw a 14% decline in EV sales to 87,300 units [14][16]. - BMW is focusing on its new generation platform to boost EV sales, aiming for 50% of its sales to be electric by 2035, while Audi is cautiously expanding its EV lineup [15][16]. Future Outlook - The BBA's transition to electric and smart vehicles is seen as a necessary response to market pressures, with the potential for new growth opportunities emerging from current challenges [17].

Core Viewpoint - BMW is facing significant challenges in the Chinese market, with a notable decline in sales and increased pressure from tariffs, leading to a negative outlook from S&P Global Ratings [2][19]. Financial Performance - In the first half of 2025, BMW's global sales exceeded 1.2 million units, a slight decrease of 0.5% year-on-year [2]. - Revenue for the same period was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [2]. - The EBIT margin for the automotive segment decreased by 2.4 percentage points to 6.2% [2]. Market Performance - The Chinese market saw the largest decline, with sales dropping 15.5% to 318,125 units in the first half of 2025 [11]. - BMW's performance in other major markets, including Europe and the Americas, showed growth, with total sales in these regions increasing by 6.3% [12]. Electric Vehicle Sales - BMW's electric vehicle (EV) sales rose significantly, with over 220,000 battery electric vehicles (BEVs) delivered, marking a 15.7% increase year-on-year [5][6]. - The share of BEVs in total sales reached 18.3%, while the total delivery of new energy vehicles (including plug-in hybrids) was 319,031 units, up 18.6% [6]. Brand Performance - The MINI brand experienced a substantial increase in sales, with a 361.7% rise in pure electric model deliveries, totaling 46,000 units [7]. - BMW brand's pure electric vehicle sales decreased by 3% to 174,000 units, while plug-in hybrid sales increased by 29% to 98,000 units [7]. Strategic Initiatives - BMW is focusing on its electric vehicle strategy, with over €4 billion invested in research and development for new generation technologies [9]. - The company plans to launch 40 new models based on the Neue Klasse platform by 2027, with the first model, the iX3, debuting at the Munich Motor Show in September [9]. Competitive Landscape - The competitive pressure in the Chinese market is intensifying, particularly from local brands offering attractive features at lower prices [19]. - BMW aims to differentiate itself by leveraging localized technology and partnerships, such as collaborating with Momenta for smart driving systems [17].

Core Viewpoint - BMW is facing significant challenges in the Chinese market, with a notable decline in sales and increased pressure from tariffs, impacting overall financial performance [1][11][21]. Group 1: Financial Performance - In the first half of 2025, BMW's global sales exceeded 1.2 million units, a slight decrease of 0.5% year-on-year [1]. - Revenue for the first half of 2025 was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [1]. - The EBIT margin for the automotive segment dropped by 2.4 percentage points to 6.2% [1]. Group 2: Market Performance - The Chinese market saw the largest decline for BMW, with sales dropping 15.5% to 318,125 units in the first half of 2025 [1][11]. - Despite challenges in China, BMW maintained leadership in revenue, net profit, and sales among the German luxury brands [1]. - In Europe, BMW's electric vehicle (EV) sales increased significantly, with a market share close to 40% for EVs [7][8]. Group 3: Electric Vehicle Sales - BMW's electric vehicle deliveries surpassed 220,000 units in the first half of 2025, marking a 15.7% increase year-on-year [6]. - The total delivery of new energy vehicles (including plug-in hybrids) reached 319,031 units, an 18.6% increase, accounting for 26.4% of total sales [6]. - MINI brand played a crucial role in the growth of electric vehicle sales, with a 361.7% increase in pure electric deliveries [5][7]. Group 4: Strategic Initiatives - BMW is focusing on electric vehicle development, with over €4 billion invested in R&D for new generation technologies [8][9]. - The company plans to launch 40 new models based on the new generation platform by 2027 [9]. - To strengthen its position in China, BMW is collaborating with local tech firms to develop intelligent driving systems tailored for Chinese roads [18]. Group 5: Future Outlook - BMW anticipates continued pressure on profit margins due to competition and tariff impacts, projecting a decline in EBIT margin to between 5% and 7% for the automotive segment in 2025 [20][21]. - The company expects to face ongoing competition from local brands in China, which may lead to a slight decline in sales in the coming years [21].

Core Insights - BMW's sales in China continue to decline, exacerbated by tariff impacts, with a reported 15.5% drop in the first half of the year [2][3][7] Financial Performance - In the first half of 2025, BMW's global sales exceeded 1.2 million units, a slight decrease of 0.5% year-on-year [1] - Revenue for the first half of the year was €67.685 billion, down 8% year-on-year, while net profit fell by 29% to €4.015 billion [2] - The EBIT margin for the automotive business decreased by 2.4 percentage points to 6.2% [2] Market Performance - The Chinese market was the largest single market decline for BMW, with deliveries dropping to 318,000 units [2][7] - Despite overall declines, BMW's electric vehicle sales rose, with over 220,000 pure electric vehicles delivered, a 15.7% increase year-on-year [4] - In Europe, BMW's electric vehicle penetration rate reached 34.8%, with a market share close to 40% in the first half of the year [5] Strategic Initiatives - BMW is focusing on electric vehicle development, investing over €4 billion in R&D for new generation technologies and the Neue Klasse platform [6] - The company plans to launch 40 new models by 2027, emphasizing electric vehicles [6] - BMW is collaborating with local Chinese suppliers to enhance its technology offerings and adapt to local market demands [9] Challenges and Outlook - Tariff pressures are expected to continue affecting BMW's profitability, with a projected EBIT margin decline of approximately 1.25% for 2025 [9][10] - Competition from local Chinese brands is intensifying, with expectations of continued sales declines in the Chinese market [11]

BMW will take on Tesla with a new line of EVs offering longer range and high-performance software. “This will be the benchmark of the industry,” BMW’s CEO says. Read more: https://t.co/nMuYgGjU3Y📷: Jana Islinger/Bloomberg https://t.co/yMuUj29W6A ...

BMW is striking back at Tesla with longer-range EVs, CEO Oliver Zipse tells @TomMackenzieTV https://t.co/QJvZkTUVeK https://t.co/0YIdF9tXKb ...

Core Insights - The German luxury car trio, BMW, Mercedes-Benz, and Audi (BBA), is facing unprecedented challenges in the transition to electric and intelligent vehicles, particularly in the Chinese market [2][7] - BBA is launching a comprehensive counterattack by collaborating with local tech firms, introducing electric models tailored for Chinese consumers, and enhancing their retail strategies [2][4][7] Intelligent Technology Development - BMW has partnered with Momenta to develop a China-specific intelligent driving solution, while Mercedes-Benz and Audi have also engaged with Momenta and Huawei, respectively [3] - BBA's strategies reflect different paces and considerations in their transformation, with Audi's collaboration with Huawei being the most extensive [3] - Sales data indicates a significant decline in BBA's performance in China, with BMW's sales down 15.5%, Mercedes-Benz down 14%, and Audi down 16.78% in early 2025 [3] Electric Vehicle Strategy - BBA is intensifying its electric vehicle (EV) offerings, with Mercedes-Benz planning to launch 10 pure electric models in the next two years, and BMW's Neue Klasse platform set to produce its first model in China by 2026 [4] - The electric vehicle strategy shows strong localization, with tailored designs and features for the Chinese market [4] - Despite maintaining a leading position in the fuel vehicle market, BBA's share in the 300,000 yuan and above segment has dropped from 72% in 2021 to 39% in 2025 [4] Channel and Service Innovation - BBA is transforming its retail strategies to enhance customer experience, with initiatives like Mercedes-Benz's EQ experience center and BMW's future mobility experience center [4] - The traditional dealership model is being re-evaluated to meet the demands of the electric vehicle era [4] Competitive Challenges - BBA faces significant challenges in building sustainable competitive advantages, including high costs, changing consumer perceptions, and the need for an integrated ecosystem [5][6] - The cost of BBA's electric models is generally 20% higher than that of domestic brands, with specific examples highlighting the cost disparity [6] - Consumer preferences are shifting towards intelligent technology, with 47% of younger buyers prioritizing smart features over brand prestige [6] Strategic Adjustments - BBA is adjusting its strategies in China by empowering local teams and establishing design centers to better understand consumer preferences [6][7] - These strategic shifts reflect a deeper recognition of the Chinese market, although the effectiveness of these changes will take time to assess [6][7]

Investment & Strategy - BMW's investment in its new architecture is the largest single investment ever made, exceeding €10 billion last year [1][3] - The company views this investment as a self-fulfilling prophecy, with widespread internal support [2] - BMW anticipates a profitable future from this platform, with iX3 deliveries expected in the first quarter of 2026 [3] Market & Competition - BMW aims to increase its global market share with its new electric car, alongside its existing combustion engine and plug-in hybrid X3 models [4] - The company believes its new car will be the industry benchmark in terms of performance and technology [5] - BMW expects to gain market share from Tesla, citing Tesla's sales decline in Europe, including double-digit drops in Germany and France [5][6] Technology & Performance - BMW emphasizes the first-mover advantage of its new car, highlighting its charging speed, range, and energy efficiency of 15 kilowatt hours per 100 kilometers [6][7] - The company believes its brand strength and high-quality recognition will give it an advantage over new entrants in the electric car market [8] Brand Perception & Customer Shift - BMW believes the pendulum is swinging back from Tesla to BMW, noting that in Europe, BMW already sells more electric cars than its competitor [8][9] - A 2019 survey indicated that many drivers were switching from BMW to Tesla Model 3s, but the trend is now reversing [8]