In a year of mixed fortunes, BMW pulled off a major win in the U.S. luxury market, outselling Lexus in Q3 2025 as hybrid models powered a strong rebound.
Hybrids Lead the Charge
Plug-in hybrid electric vehicles (PHEVs) were a decisive factor in BMW’s U.S. rebound. PHEV sales jumped 37% year-over-year during Q3, despite BMW offering a relatively small PHEV roster in the U.S. market. Key models contributing to the lift included the 550e xDrive, X5 xDrive50e, 750e xDrive, and performance-oriented variants such as the M5 and BMW XM Label.
The hybrid surge more than offset a 16% decline in EV sales. BMW’s EV inventory also tightened: the company began Q4 with a 28-day supply of EVs, down from 65 days in mid-2025 — an indication of faster EV turnover or constrained deliveries.
What Lexus and the Rest of the Market Are Doing
Lexus remains on track for a record year, projecting roughly 355,000 vehicles for 2025. The redesigned GX and the larger TX have driven much of that momentum: TX volumes rose 86% year-over-year after an airbag-related slowdown last year, while GX sales climbed 35% despite the model being in its third generation cycle.
Mercedes-Benz lagged behind, delivering about 73,500 units in Q3 — a 13% drop from the prior year — and remaining in third place. Audi and Cadillac each moved roughly 46,500 vehicles, with Cadillac posting its best third quarter ever.
