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BMW’s 2024 China Sales Highlight Challenges and Strategic Shifts

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Highlights

  • BMW Group experienced a 13.4% year-on-year decline in vehicle deliveries in China in 2024 despite growth in electric vehicle sales.
  • The company plans to launch over 10 new models in 2025, including the BMW Neue Klasse, which has innovative technology developed 70% in China.
  • BMW focuses on sustainability efforts at its Shenyang production base, including renewable energy and closed-loop battery recycling.

BMW Group reported 2024 deliveries of 714,500 vehicles in China, marking a significant 13.4% year-on-year decline. While models like the China-made BMW X5 (nearly 90,000 units sold) and the BMW 5 Series (monthly sales above 10,000 units in Q4) performed well, the overall drop raises questions about market competitiveness in China, especially as local brands like BYD and NIO expand their dominance.

On a brighter note, BMW’s battery electric vehicle (BEV) sales grew by 7.7% year-on-year, contributing 15% of total sales. As of 2024, the company surpassed 400,000 cumulative deliveries of new energy vehicles (NEVs) in China. However, this progress still lags behind Chinese EV leaders, challenging BMW’s ability to gain significant ground in the rapidly electrifying market.

Ambitious Plans for 2025

In 2025, BMW aims to reinvigorate its China presence with over 10 new BMW-branded models, MINI additions, and expanded Motorrad offerings. Highlights include the debut of the all-new BMW X3 Long-wheelbase Edition in February and the continued rollout of high-performance BMW M series models. Additionally, the BMW Neue Klasse, featuring advanced driving assistance systems and the innovative Panoramic iDrive system powered by BMW Operating System X (70% developed in China), is set to redefine user experiences.

Sustainability Efforts in Focus

BMW’s commitment to green energy is evident at its Shenyang production base (opens in a new tab), where renewable energy powers operations, geothermal heating was introduced in 2024, and water and CO2 emissions per vehicle were significantly reduced. The group has also implemented closed-loop recycling for retired BEV batteries, underscoring its environmental stewardship reports Shanghai Metals Market (opens in a new tab) via Gasgoo (opens in a new tab).

BMW Shenyang

Critical Issues and Implications

Despite these achievements, several challenges remain. BMW’s declining market share in China suggests a struggle to compete with local automakers that dominate the NEV space with affordable, innovative offerings. While BMW emphasizes local R&D—70% of the software for its operating systems is developed in China—this reliance raises concerns about data security and intellectual property risks.

Moreover, the company’s heavy localization strategy must prove effective in aligning with Chinese consumer preferences while navigating geopolitical uncertainties. Though commendable, BMW’s sustainability efforts may not sufficiently differentiate it in a market where local competitors are equally focused on green innovation.

What’s Next?

BMW’s 2024 performance in China reflects a mix of progress and significant hurdles. While the company’s plans for 2025 demonstrate ambition, its ability to compete effectively in the world’s largest automotive market will hinge on accelerating NEV adoption, refining localization strategies, and addressing market pressures from agile domestic competitors. The stakes are high, and BMW’s future in China depends on its capacity to adapt and innovate in this rapidly evolving landscape.

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