BMW’s performance varied sharply by region. In Europe, demand for both PHEVs and BEVs remained robust, supported by stringent emissions regulations and generous subsidies for electrified vehicles. The BMW i4, a sleek electric sedan, posted notable gains, appealing to buyers seeking performance and sustainability. Meanwhile, the United States showed resilience in overall sales, with BMW leading the premium car market over rivals Mercedes-Benz and Audi, selling 178,499 vehicles in the first half of 2025. However, the sharp decline in U.S. BEV sales underscores a shift toward hybrids, as consumers grapple with charging infrastructure gaps and higher upfront costs for fully electric models.
China, the world’s largest EV market, proved a tougher battleground. BMW’s global deliveries fell 14% in China, as domestic competitors like BYD and NIO capitalized on lower prices and localized offerings. This slump offset gains in other regions, contributing to BMW’s modest global sales growth of 0.4% in Q2, with 621,271 vehicles delivered worldwide. The competitive pressure in China highlights the need for BMW to adapt its electric lineup to local tastes, possibly with more affordable or region-specific models.
Sports Activity Vehicles Bolster Growth
Beyond electrification, BMW’s Sports Activity Vehicles (SAVs) emerged as a bright spot. SAVs, including models like the X1 and X3, saw a 17% sales increase in the first half of 2025, accounting for 59% of total sales in Q2. In India, the X1 led the premium compact segment, capturing over 30% of BMW’s sales in that market. This demand for versatile, luxury SUVs underscores BMW’s ability to balance its electrification goals with consumer preferences for larger, multi-purpose vehicles. The success of SAVs has helped offset weaker BEV performance, keeping overall sales on an upward trajectory.
India’s Electric Boom
India stood out as a success story for BMW’s electric ambitions. The company reported a 234% surge in EV sales in the first half of 2025, with e-mobility accounting for 18% of total sales. Long-wheelbase models, tailored to Indian preferences for spacious luxury, grew 159% and commanded a 47% share of sales. This growth reflects India’s rising appetite for premium electric vehicles, driven by urban consumers and improving charging infrastructure. BMW’s ability to dominate the luxury EV segment in India signals potential for further expansion in emerging markets.
Competitive Landscape and Challenges
BMW’s mixed results come amid a broader slowdown in the global EV market. Competitors like Tesla saw a 13% drop in global deliveries in Q2 2025, while Volkswagen reported a 34% decline in China despite strong BEV growth in Europe. Mercedes-Benz also faced an 18% drop in BEV sales, though its PHEV sales grew, mirroring BMW’s trend. These shifts suggest a market in transition, with consumers leaning toward hybrids as a bridge to full electrification. BMW’s challenge lies in boosting BEV appeal, particularly in North America and China, where competition and infrastructure hurdles loom large.
The company’s focus on plug-in hybrids may serve as a strategic buffer, catering to buyers hesitant about fully electric vehicles. However, BMW must address the declining EV growth rate to maintain its position in the luxury EV market. Upcoming models, such as the next-generation iX3, could help reignite interest, especially if priced competitively and equipped with enhanced range and features.
Looking Ahead
BMW’s electrification journey reflects the complexities of a rapidly evolving automotive landscape. The strong performance of PHEVs and SAVs demonstrates the company’s ability to adapt to diverse consumer needs, while the dip in BEV sales signals areas for improvement. By doubling down on regional strategies—like tailored models for India and China—and investing in charging infrastructure advocacy, BMW can strengthen its electric portfolio. For now, the automaker’s balanced approach keeps it ahead of rivals in key markets, but sustaining EV growth will require sharper focus in the second half of 2025.
