BMW is bringing its Neue Klasse electric cars to China as the world’s biggest EV market moves at a speed the German marque has struggled to match. The iX3 is BMW’s answer. Whether it arrives in time is the question.
China has reset the pace
BMW is betting on its long-awaited Neue Klasse electric cars to revive its fortunes in China after two years of declining sales. The problem for the German automaker is that China’s EV race may already have moved on without it. Under new CEO Milan Nedeljkovic, BMW issued a shock profit warning last month that it partly blamed on China — its third in less than three years.
Some shareholders and analysts say BMW has moved too slowly to bring its long-trailed Neue Klasse, or “new class”, EVs to a market where Chinese rivals are developing increasingly sophisticated electric cars in as little as 18 months — roughly twice as fast as traditional automakers.
“If this had launched two years ago it could have been a game-changer. In today’s Chinese auto market, it is hard to stand out.”
Yale Zhang, Automotive Foresight
Chinese buyers increasingly expect the latest technology from home-grown carmakers such as Nio, which has demonstrated its flagship ET9 sedan travelling over speed bumps with a tower of champagne glasses balanced on the bonnet — a showpiece for its advanced suspension system.
Prestige is no longer enough
BMW’s first Neue Klasse model for China, the iX3 SUV, is due to go on sale in November. Its challenge reflects the broader struggle facing German premium automakers in a market where engineering pedigree and combustion-engine heritage carry less weight with many buyers than they do in Europe and the United States.
“Chinese consumers no longer buy into that,” said Wang Xianbin, vice president of the Gasgoo Research Institute. Buyers are turning to local brands such as Nio and Xiaomi, which offer intelligent EV features built around Chinese tastes. Chinese premium brands are openly targeting customers of BMW, Audi, Porsche and Mercedes.
BMW IN CHINA — THE NUMBERS
BMW’s China sales fell in both 2024 and 2025; Audi fell 19% in the first half of this year.
Discounts cannot close the gap
BMW says its China strategy places greater emphasis on highly integrated digital services, advanced connectivity and rear-seat comfort. Yet the pricing picture is unforgiving. Shanghai consultancy LandRoads put BMW’s average China transaction price in 2025 at 341,000 yuan ($50,200), below local brands such as Nio, Aito and Denza. Among German premium brands, only Audi was priced lower, at 287,000 yuan.
BMW cut some list prices in China in coordination with local authorities in the first quarter, while independent dealers can set their own discounts. Analysts argue that price cuts alone are no longer enough: buyers still want value, but they also want the features local competitors are bringing to market at speed.
“Chinese consumers today don’t just pick a car based solely on deep discounts.”
Wang Xianbin, Gasgoo Research Institute
A late local pivot
As BMW’s former production chief, Nedeljkovic is one of the architects of the Neue Klasse platform, which underpins 40 new launches by next year and has generated encouraging early demand in Europe. But BMW delayed the China launch of the iX3 after switching from in-house technology to Chinese partner Momenta for assisted-driving technology — a feature many local consumers now consider essential.
BMW says its approach to “China speed” is different: it points to thorough testing throughout development to ensure customer safety. That caution may reassure buyers, but it will not make the market wait. Analysts say BMW’s range-anxiety messaging already sounds dated, while handling and performance — attributes celebrated in Europe — do not necessarily resonate as strongly with Chinese EV buyers.
Domestic brands have become far more aggressive in design and features. The verdict from Gasgoo’s Wang is blunt: BMW remains heavily driven from Munich and has not fully understood what Chinese consumers want. “Overall, it’s clear that BMW is one step behind,” he said.
November will be BMW’s reality check. The iX3 launch will show whether Neue Klasse can still turn German engineering into a convincing answer for China’s fast-moving EV buyers.