BMW targets higher margins by simplifying lineup and adding premium models

During a capital markets briefing in Munich, BMW disclosed a multi-year roadmap to rebuild margins after a profit warning triggered by a price war in China and costly electrification. Management targets auto margins of 3-5% by 2028 and a long-term range of 8-10% in the early 2030s. The recovery hinges on simplifying an overly complex model lineup, shortening development cycles and deepening partnerships with suppliers, which could cut component costs by up to 30% in China.

BMW will also shrink its Chinese dealer network and push more standardized local parts. To raise profitability, the automaker plans a new premium SUV above the X7, more M-brand performance cars and a larger presence for Alpina, positioned between its core luxury range and Rolls-Royce. The rollout of a new electric-vehicle generation, highlighted by European orders for the iX3 exceeding 100,000, forms another pillar of the strategy.