The ramp up of the Neue Klasse begins in 2026. BMW is now leaning on that product cycle while cutting its full-year financial outlook after a tougher second quarter.
The product plan is still moving quickly. BMW said more than 40 new and updated models are due by 2027, with Neue Klasse technology spreading across the range rather than staying locked to two or three electric cars.
The new all-electric iX3 has already drawn strong demand in Europe. BMW said its Debrecen plant in Hungary is running two shifts ahead of schedule, while the i3 has also had its design premiere in Munich as the second Neue Klasse model.
The financial backdrop is less cheerful. BMW Group has cut its 2026 guidance, with China and the Asia-Pacific region doing much of the damage. The company said China’s car market has weakened further, especially for non-electric models. Stronger sales in Europe and the US are not enough to offset the decline.
The Middle East conflict has added pressure through higher energy prices and weaker consumer sentiment across several markets.
BMW now expects automotive deliveries to show a slight decrease from last year, instead of staying flat. Its automotive EBIT margin forecast has been cut to 1-3%, from 4-6% previously. Return on capital employed in the automotive division is now expected at 1-5%, down from 6-10%.
Group profit before tax is also expected to fall significantly, rather than moderately. Automotive free cash flow is still expected to exceed €2.5 billion, while the dividend payout ratio and share buyback plan remain unchanged.
BMW is also accelerating cost and efficiency measures, which will bring a one-off earnings hit in the second half of 2026.
A major product reset is now beginning, but BMW has to get through a much rougher market first.
