BMW Group Enters Fiscal Year 2025 with a Clear Commitment to Growth
The BMW Group is entering fiscal year 2025 with a clear commitment to growth — aiming for a slight increase in sales volume, reduced investments, and strong free cash flow.
“What has always set the BMW Group apart is our ability to stay on course, even in challenging conditions. We remain clearly focused on two things — our short-term performance and our long-term perspective,” said Oliver Zipse, Chairman of the Board of Management of BMW AG, on Friday. “With the NEUE KLASSE, we are implementing the largest future-oriented project in our company’s history, while at the same time achieving robust free cash flow.”
At the end of this year, the first production model of the NEUE KLASSE — the new BMW iX3 — will begin an unprecedented ramp-up of new models. Across all drivetrain variants and segments, the BMW Group will launch more than 40 new and updated vehicles by 2027. These models will share advanced technology clusters that will be gradually introduced throughout the entire product portfolio with the launch of the NEUE KLASSE.
“We are taking a major leap forward with our new technology clusters — achieving maximum scalability, increasing the level of innovation, and enhancing customer benefits. We do not differentiate between segments or drivetrain technologies — we provide every customer with the latest technology,” Zipse added.
Consistent Execution of Strategy
The BMW Group made substantial investments in innovative technologies, its model lineup, and its global production footprint in 2024. This year, spending will decrease following the planned peak in R&D and capital investment last year. On this basis, the company aims for profit before tax at the previous year’s level — despite increased tariffs.
“Never before in BMW’s history have we invested so extensively in our future. Investment reached its highest level in 2024, as planned. This underscores the strength of our strategy — and how consistently we are implementing it,” said Walter Mertl, Member of the Board of Management for Finance.
Technology Openness as a Strategic Success Factor
The diversity of its product range remains a key success factor for the BMW Group. The company is well positioned to meet diverse global customer needs — both today and in the future — with a wide drivetrain portfolio encompassing internal combustion engines, plug-in hybrids, battery-electric drivetrains, and, starting in 2028, hydrogen-powered fuel-cell electric vehicles.
Highly efficient internal combustion engines, still in strong global demand, will continue to play an important role. Last year alone, the company launched more than 15 new or updated internal combustion engine models. All engines have long been approved for higher shares of renewable fuels. Fuels with lower CO₂ content are one of the most effective ways to reduce the carbon footprint of the existing fleet of more than 250 million vehicles in Europe alone, making a key contribution to the transport sector’s climate goals.
Battery-electric vehicles (BEVs) remain the BMW Group’s primary growth driver. Its all-electric lineup now includes over 15 models across all brands — meaning the BMW Group offers fully electric options in all major segments. In 2024, global BEV sales rose sharply to 426,536 units (+13.5%), representing more than 17% of total sales. At MINI, about one in four vehicles is fully electric; at Rolls-Royce, it is one in three.
Plug-in hybrids (PHEVs) continue to play an important role in the BMW Group’s technology-open approach to electrification. The latest BMW PHEVs offer an all-electric range of over 100 kilometers, making them suitable for most daily driving scenarios while significantly reducing CO₂ emissions. In total, the BMW Group delivered nearly 600,000 electrified vehicles (PHEVs and BEVs combined) in 2024 — meaning almost one in four vehicles sold was electrified.
Electrified Deliveries Reach Record High
In 2025, the company will reach two major milestones:
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Three million electrified vehicles on the road since the launch of the BMW i3 and BMW i8.
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1.5 million fully electric vehicles delivered to customers.
The reduction in CO₂ emissions of the new vehicle fleet also underscores the effectiveness of BMW’s technology openness. Based on preliminary figures, the BMW Group reduced its EU fleet emissions to below 100 grams of CO₂ per kilometer (WLTP) for the first time in 2024.
First Hydrogen Production Vehicle to Launch in 2028
In 2028, the BMW Group will become the first premium manufacturer worldwide to launch a series-production fuel-cell vehicle, offering customers another zero-emission drivetrain option. To this end, BMW is expanding its cooperation with Toyota Motor Corporation. The two companies will jointly develop the drive system for passenger cars, which will then be adapted to their respective brand portfolios. The planned BMW model will fit seamlessly into the brand’s lineup, offered alongside other drivetrain options.
NEUE KLASSE: Laying the Foundation
Series production of the NEUE KLASSE will begin in late 2025. The first model — the BMW iX3 — will enter production at Plant Debrecen, the BMW Group’s first facility built exclusively for fully electric vehicles. Since late 2024, the plant has been producing pre-series vehicles for testing.
The BMW iX3 will kick off an unprecedented model rollout through 2027, followed by more than 40 launches across all drivetrain variants — including a sporty sedan core to the BMW brand, set to debut in 2026.
The NEUE KLASSE will introduce advanced technology clusters across the full BMW lineup, incorporating innovations in electric drive systems, software architecture, and design. The company has registered numerous patents in areas such as electric motor components, projection technologies, and driving dynamics control.
Software-Defined Vehicle and Digital Innovation
BMW has completely redesigned the electronic architecture of its vehicles — introducing a “digital nervous system” with a new zonal electric system, software structure, and four high-performance computers (“super-brains”). These systems consolidate computing power for key functions such as infotainment, automated driving, and vehicle dynamics — delivering over 20 times more in-car processing capability than previous generations.
The new zonal architecture reduces wiring by 600 meters and vehicle weight by 30%, while “smart eFuses” minimize energy use when parked or charging. Developers are working on more than 1,000 software modules and 500 million lines of code to continuously enhance this architecture.
The “Heart of Joy”: Next-Level Driving Dynamics
With the “Heart of Joy” system, BMW is taking driving performance to a new level. The in-house developed integrated control system manages drivetrain, braking, and energy recovery — delivering up to 25% higher overall efficiency. In 98% of driving situations, the car relies solely on regenerative braking.
The system’s capabilities are demonstrated in the BMW Vision Driving Experience, which generates torque up to 18,000 Nm. The concept will be showcased at Auto Shanghai 2025.
New BMW Panoramic iDrive
Building on two decades of innovation, BMW introduces “BMW Panoramic iDrive” — a completely reimagined interface with a full-width windshield projection (BMW Panoramic Vision), 3D head-up display, central touchscreen, and multifunction steering wheel.
This system, powered by the new in-house developed BMW Operating System X (based on Android Open Source Project), enhances personalisation, update capability, and seamless content distribution across all displays.
Sixth-Generation BMW eDrive
The sixth generation of BMW eDrive debuts with the NEUE KLASSE, featuring a new 800-volt system, round-cell battery architecture, and the in-house developed “BMW Power Master” controller.
The new batteries offer 20% higher energy density, 30% faster charging, and at least 30% greater range, while reducing costs by 40–50% compared to the current generation.
Financial Performance and Outlook
BMW invested over €18 billion in 2024, primarily in R&D and capital expenditures related to new products and infrastructure. Despite global challenges, the company met its revised 2024 targets.
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Group revenue: €142.4 billion (–8.4% YoY)
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Group profit before tax (EBT): €10.97 billion (–35.8%)
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Automotive EBIT margin: 6.3% (within revised range)
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Free cash flow (automotive): €4.85 billion
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Dividend proposal: €4.30 per common share (€4.32 preferred) — the fourth highest in company history.
Outlook for 2025
The BMW Group expects:
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Slight overall sales growth, driven by new model launches.
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Increased share of all-electric vehicles.
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EBIT margin in Automotive between 5.0–7.0%.
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Automotive RoCE between 9–13%.
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Financial Services RoE between 13–16%.
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Motorcycles EBIT margin between 5.5–7.5%.
While headwinds such as tariffs and slower demand in China remain, BMW’s diversified portfolio and technology strategy position the company for continued resilience and profitability.