BMW has one of the most complicated lineups in the automotive industry, with dozens of models spanning nearly every segment. It’s a strategy that has clearly paid off, as Munich consistently tops the charts among luxury brands. Counting MINI and Rolls-Royce, the Group sold 2,463,681 cars in 2025, roughly 90,000 units short of a new record.
But while global demand remains relatively stable, the BMW Group is falling hard in China. Between the record-breaking year of 2021 and last year, annual sales in the company’s largest market fell by more than 200,000 units. 2026 is likely to be even worse, given that Group sales are down 20.4% through June.
New CEO Milan Nedeljković blames the “rapid deterioration of the market in China” for BMW’s decision to adjust its guidance for 2026. The company now expects a “slight decrease” in global sales and a “significant decrease” in profit before tax. Previously, BMW had projected similar sales volumes and only a moderate decline in PBT.
Major Changes Ahead?
Facing this new reality, BMW is planning to “fundamentally transform the company,” according to its new head honcho. One bullet point that caught our attention is the apparent need to thoroughly analyze the lineup and decide whether some models should be removed. Of course, Milan Nedeljković is not naming any names because it’s too soon for that. However, the following statement raises the possibility of model cuts:
“We are reevaluating which technologies, model variants, and drivetrains we will need in the future.”
The dice may have already been thrown for some models. The Z4 and 8 Series are now resting in the car graveyard, where the i4 is about to join them. There are also reports that the 2 Series Active Tourer and iX will not be renewed for a next generation. The XM’s future also seems murky. Elsewhere, the X4 is not coming back with combustion engines, though an iX4 is launching soon. Of course, these rumored product cuts are not official until the company says so.
For now, there are no product cuts planned:
“We’re not planning to make any reductions of the portfolio or to cut the individual offers. Nevertheless, it’s about profitability of the derivatives on a global level. That is what we also focus on. We also look at the drivetrain variants and the product models in individual market forces will be reanalyzed.”
Fewer Drivetrains Are A Possibility
The “drivetrains” part of the statement is particularly worrying. After all, BMW has been all about the “Power of Choice” during the Oliver Zipse era. Given increasingly strict emissions regulations, we think diesel engines are among the most vulnerable. The bonkers quad-turbo B57S powering the M50d models has long since been retired, and we don’t see a bright future for the remaining diesel-fueled M Performance models. The X3/X4 M40d are already gone, and the M340d/M440d might not be long for this world either. Other brands are gradually phasing out diesels from their smallest cars and replacing them with gas hybrids.
Circling back to products, BMW also wants to roll out models faster and reduce R&D costs by increasing hardware sharing between models. Greater standardization will lower complexity, which should be good for the bottom line. These cost-cutting measures might have also put the brakes on the long-rumored off-road SUV, which our sources say might not happen after all.
Given the potential reduction in BMW’s model lineup, the dream of a new supercar to follow in the footsteps of the M1 remains just that, a dream.
First published by https://www.bmwblog.com
