BMW sees smoother road ahead in China after sales skid in 2025

German carmaker reports a solid start to 2026 amid stabilising prices, with new EV model, its ‘most Chinese car’ ever, coming soon

BMW could be approaching the end of the tunnel in China as signs of stabilisation raise hopes of a turnaround after the German carmaker reported that sales dropped by double digits in the key market in 2025.

“Transaction prices in the market for our products have stabilised … and are actually improving slightly compared to [the third quarter],” said Walter Mertl, chief financial officer, during a press conference on Thursday.

“If the run rate continues this way, we have the opportunity to go back to prior year levels in China,” he said, adding that the company’s products had been well received and dealerships were operating more smoothly.

The slight optimism came after the group posted another year of negative results in its single biggest market, where sales dropped by 12.5 per cent.

CEO Oliver Zipse said sales in China did not meet the group’s target last year “due to the intense competitive market environment”. He added that China was the only major market where BMW sales fell in 2025.

In broader terms, the group saw a 3 per cent drop in its net profit to €7.45 billion (US$8.6 billion) – much better than its German peer Mercedes-Benz, which reported that net profit in 2025 almost halved.

BMW is betting on the roll-out of its Neue Klasse electric vehicle (EV) models, which have seen strong demand in other markets, to help it win back Chinese customers, senior managers said. The first such car to hit the mainland, the China-made version of the iX3, is set to launch at the Beijing Auto Show in April. Zipse called it “the most Chinese car” the German group had ever built.