China Headwinds Delay BMW's Recovery

BMW’s strategy is centered on three elements: electric, digital, and circularity. The company moved relatively early to invest in electric powertrain technology, contributing to a higher new electric vehicle penetration rate of 26% versus 21% for Mercedes and 19% for Audi. Its digital strategy focuses on software-defined vehicles and leadership in automated driving, with BMW becoming the first original equipment manufacturer in Germany to receive DCAS approval in 2025 for Level 2+ automated driving systems, which will become standard across the Neue Klasse platform starting with the iX3. For circularity, the firm aims to increase its use of recycled materials in production to at least 25% by 2030, particularly in battery materials. It is investing in hydrogen-powered vehicles as another way to increase the penetration of clean transport, with its belief that hydrogen better replicates the current internal combustion engine user experience with short fill-ups using existing petrol station infrastructure.