BMW's sales in China fell 30% in the second quarter of 2026 compared to the same period last year, leaving it at risk of a third consecutive annual decline. The company is preparing to bring the Neue Klasse series to China with the electric iX3 model, which will go on sale in November.
While Chinese brands develop their new models in 18 months, this period can take up to three years for traditional manufacturers. While brands such as Nio and Xiaomi stand out with artificial intelligence and digital features, BMW's driving dynamics are losing their former importance. While BMW's share of electric vehicles in China remained at 5%, this rate reached 46% across the country.
The price cuts did not increase sales sufficiently, and the average sales price remained below that of Chinese premium brands. BMW is expanding its collaboration in digital services in China by working with local company Momenta for the driving assistance system in the iX3. The new iX3 will offer over 900 km range and fast charging features, but will face strong local competitors.
BMW aims for a comprehensive transformation with the Neue Klasse, but its success will depend on digital features and price competition.