BMW AG is committing over 30 billion RMB ($4.1 billion) to a new generation of vehicles, launching an unprecedented 40-model offensive by 2027 in a direct challenge to Chinese electric-vehicle makers that have eroded the German automaker’s market share. The strategy, unveiled in Beijing, centers on a new platform with technology developed specifically for the Chinese market.
“Through these new models exclusively for China, we are combining BMW’s globally leading technology platform with localized solutions developed around the needs and preferences of Chinese customers,” Oliver Zipse, Chairman of the Board of Management of BMW AG, said at the event on April 22.
The product blitz will be led by the new long-wheelbase iX3 and i3 models, built on the “New Generation” architecture. The iX3 crossover is stated to have a range of over 900 kilometers, while the i3 sedan will exceed 1,000 kilometers, according to China’s CLTC testing standard. Both will use an 800-volt electrical architecture that allows for adding 400 kilometers of range with just a 10-minute charge.
The move comes as German luxury brands have seen their share of the Chinese passenger car market fall from nearly 25 percent five years ago to around 14 percent today. BMW aims to reclaim its footing against domestic rivals like AITO and Li Auto by leveraging deep local partnerships and a complete technological overhaul, targeting its existing base of 8 million owners in the country.
A Deeply Integrated Chinese Tech Ecosystem
In a significant strategy shift, BMW is moving beyond simple localization to co-developing core vehicle systems with Chinese technology giants. The new BMW iDrive system, which features a 3D head-up display and a panoramic dashboard screen, had 70 percent of its source code developed in China.
The system’s AI-powered personal assistant is based on Alibaba Group’s Tongyi Qianwen large language model, while the Level 2 autonomous driving system is a joint effort with Momenta, an autonomous driving company, to tailor the experience for China’s complex traffic environment. Furthermore, the vehicles will integrate with Huawei’s HarmonyOS NEXT, ensuring seamless connectivity with the country’s dominant smartphone ecosystem.
New Generation Platform Redefines EV Performance
At the core of the new vehicles is BMW’s sixth-generation eDrive technology and a proprietary vehicle dynamics computer dubbed the “Heart of Joy.” This central processor integrates control over the powertrain, braking, and steering to enhance the brand’s signature driving dynamics, a feature often seen as a key differentiator from local competitors.
The platform will be powered by large cylindrical batteries supplied by Chinese battery titans CATL and EVE Energy. BMW has invested 10 billion RMB in a new battery production facility in Shenyang to support the rollout. This is in addition to a 20 billion RMB investment to upgrade its Shenyang automotive plant for “New Generation” vehicle production, part of a nearly 100 billion RMB total investment in the site since 2010.
The first of the new models, the iX3 long-wheelbase, is scheduled to launch in China in the second half of this year. For investors, this aggressive, capital-intensive strategy represents a critical test of whether a legacy automaker can adapt and compete with the speed and local focus of China’s EV startups. The success of these 40 new models will likely determine BMW’s trajectory in its most important single market for the next decade.
This article is for informational purposes only and does not constitute investment advice.
