BMW is reassessing its future product strategy after weakening sales in China prompted the company to lower its 2026 financial outlook. The automaker says it plans to fundamentally transform the business, a move that could lead to a review of its model lineup, drivetrain offerings, and development strategy.
China Weakness Forces BMW to Revise 2026 Guidance
BMW operates one of the broadest product portfolios in the luxury automotive market, with dozens of models spanning nearly every segment. That approach helped the BMW Group, including MINI and Rolls-Royce, sell 2,463,681 vehicles in 2025, finishing roughly 90,000 units short of a new sales record.
However, the company has experienced a sharp decline in China, its largest market. Between the record-setting year of 2021 and 2025, annual sales fell by more than 200,000 units. Through June 2026, BMW Group sales in China were down 20.4%.
New CEO Milan Nedeljković attributed the company’s revised forecast to the “rapid deterioration of the market in China.” BMW now expects a slight decline in global sales during 2026 and a significant decrease in profit before tax, replacing its earlier forecast of similar sales volumes and only a moderate decline in profit before tax.
BMW Reviewing Its Product Portfolio
As part of its transformation plan, BMW says it intends to fundamentally review the company, including an analysis of its model lineup to determine whether certain vehicles should be discontinued.
Milan Nedeljković did not identify any specific models that could be affected, stating it is too early to do so. However, the company’s comments leave open the possibility of future product reductions.
Some models are already nearing the end of their lifecycle. The Z4 and 8 Series are described as being in the “car graveyard,” while the i4 is expected to join them. Reports have also suggested the 2 Series Active Tourer and iX may not receive next-generation replacements. The future of the XM remains uncertain, while the X4 is not expected to return with combustion engines, although an iX4 is scheduled to launch. These reported changes remain unofficial unless confirmed by BMW.
Drivetrain Strategy Could Also Change
BMW’s reference to reviewing its drivetrains has also raised questions about the future of certain powertrains. During Oliver Zipse’s leadership, the company emphasized its “Power of Choice” strategy by offering multiple propulsion options.
With emissions regulations becoming more stringent, diesel engines could face increased pressure. The quad-turbo B57S engine previously used in M50d models has already been discontinued. The X3 M40d and X4 M40d have also exited the lineup, while the long-term future of the M340d and M440d remains uncertain.
The company also plans to accelerate vehicle development while lowering research and development costs by increasing hardware sharing across models. BMW says greater standardization will reduce complexity and improve efficiency.
According to the report, those cost-reduction efforts may also have affected plans for a long-rumored off-road SUV, which sources indicate may no longer move forward.
What Comes Next
BMW’s updated strategy reflects its response to changing market conditions, particularly in China. While the company has not confirmed specific product cancellations, it has indicated that both its model range and drivetrain portfolio will be evaluated as part of a broader transformation aimed at improving efficiency and adapting to current market realities.
