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What BMW is changing in China
Local engineering and software
BMW says it is developing Neue Klasse products for China with local engineering teams and partners. In the BMW Group Report 2025, Chairman Oliver Zipse described the approach as “in China, for China and with China.” BMW also reported that the China-specific derivative of BMW Operating System X incorporates approximately 70% locally developed software. That percentage is BMW’s own reported figure, not an independently verified measure.
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Local sourcing and production
In a 2022 announcement, BMW said it planned to begin local Neue Klasse production for China in Shenyang in 2026 and described a local-for-local supplier strategy. The announcement counted around 430 local suppliers in BMW Brilliance Automotive’s network at that time; it is a historical figure, not a current supplier count. BMW’s later report still described local production as a plan. These materials do not establish whether the planned production start has since occurred.
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BMW’s 2025 report also described a China-specific iX3 Long Wheelbase, planned for unveiling at Auto China 2026 and market entry in the second half of 2026. Those are BMW’s stated schedule and product plans; the report alone does not confirm that either milestone was completed.
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What the cost figures do—and do not—show
Battery-pack cost reduction
BMW’s 2025 CFO presentation lists “40-50% battery pack cost reduction” in its Neue Klasse section. The cited slide excerpt does not identify the comparison baseline or method, or say whether the reduction is a target, estimate or realized result. It should therefore be read as a BMW presentation figure, not as proof that production battery packs already cost 40–50% less.
Profitability ambition
The same presentation names China, structural costs and Neue Klasse among the building blocks of BMW’s stated ambition to return to an 8–10% margin range. That is a goal, not a reported margin achieved by Neue Klasse or a result attributable to any single cost measure.
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Company-wide savings
BMW’s 2025 report says it reduced research and development expenditure and investment from their respective 2024 peak levels and drove additional savings. It also describes intense competition, particularly in China. This is evidence of broader cost discipline in BMW’s operating environment; it does not establish that a specific Neue Klasse cost reduction has already been delivered.
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Why BMW is regionalizing production
BMW describes a production network in which volumes in Europe, America and China roughly reflect sales in those regions. That is a regional matching strategy, not simply a China-specific cost maneuver: the company presents Neue Klasse within wider factory and production-network planning. Producing nearer to major markets and developing products for local requirements are consistent with cost control, but BMW’s materials do not quantify the savings from regional matching.
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Does this mean BMW is copying Chinese automakers?
Not on the evidence available here. BMW’s own announcements support a clear account of local engineering, locally developed software, local sourcing and planned Chinese production. They do not show that Chinese automakers invented these approaches, identify a particular company BMW copied, or document a direct transfer of tactics.
The more defensible conclusion is that BMW is adapting its development and manufacturing footprint to compete in China while pursuing cost and margin goals across Neue Klasse and the wider business. Calling this “borrowing tactics straight from China” goes beyond what BMW’s published statements establish. Similar responses to local market pressures are not, by themselves, proof of copying.
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