BMW Group has outlined its strategic vision for 2025, forecasting slight sales growth, a stronger push into electrification and reduced investment spending after a peak in 2024.
"We remain clearly focused on two things – our near-term performance and our long-term perspective," said Oliver Zipse, Chairman of the Board of Management of BMW AG.
The company aims to maintain robust free cash flow while executing the largest innovation drive in its history with the Neue Klasse platform.
The first production model, the next-generation, fully electric BMW iX3, is set to roll off the assembly line at Plant Debrecen in late 2025.
Neue Klasse: BMW's future
The Neue Klasse represents a pivotal shift in BMW’s electric vehicle (EV) strategy.
Built on an all-new architecture, these models will integrate BMW’s sixth-generation eDrive technology, featuring round-cell batteries with 20% higher energy density, 30% faster charging and an estimated 30% range increase.
BMW’s modular approach ensures that all future models benefit from these innovations. The upcoming BMW iX3 will spearhead a wave of over 40 new and updated models across multiple segments by 2027, with a sports sedan launching in 2026.
Electrification accelerates
Battery electric vehicles (BEVs) remain the company's fastest-growing segment. BMW reported 426,536 BEV sales in 2024, a 13.5% increase, with EVs now representing over 17% of global deliveries.
By 2025, BMW anticipates hitting the milestone of three million electrified vehicles sold since the launch of the i3 and i8.
Plug-in hybrids (PHEVs) remain a crucial part of the company’s electrification strategy, offering over 100 km of all-electric range. Last year, nearly 600,000 electrified BMWs (BEVs and PHEVs) were delivered to customers, accounting for almost 25% of total sales.
Hydrogen power joins the party
Expanding its multi-powertrain approach, BMW will launch its first hydrogen-powered production vehicle in 2028.
Developed in partnership with Toyota, this fuel-cell model will provide an additional zero-emission alternative, particularly for markets where battery-electric adoption faces infrastructure challenges.
Advanced digital and driving tech
The Neue Klasse will introduce the "software-defined vehicle", featuring a completely redesigned digital nervous system.
A new zonal electronic architecture will consolidate computing power into four high-performance units, increasing efficiency while cutting wiring weight by 30%.
The BMW "Heart of Joy" system is also set to revolutionise driving dynamics by integrating drivetrain and braking functions. In most scenarios, the system’s energy recuperation eliminates the need for conventional braking, boosting efficiency by up to 25%.
BMW’s new Panoramic iDrive, debuting in the iX3, will enhance driver interaction through a full-width windscreen display, 3D head-up technology and voice control powered by a large language model (LLM) and generative artificial intelligence (AI).
Financial outlook
Following record-high R&D spending in 2024, BMW will slightly scale back investments in 2025 while maintaining profitability.
The company projects an earnings before tax (EBT) margin of 7.7% and a free cash flow exceeding €5 billion (around NZ$9.4 billion).
Despite economic challenges, including increased tariffs and subdued demand in China, BMW remains optimistic about its diversified powertrain approach. The company expects its automotive EBIT margin to stabilise between 5% and 7% in 2025.
