Can BMW stage a comeback in the Chinese market as German luxury car giants "return" to extended-range vehicles?

Recently, media reports indicated that as the market demand for the range - extender technology promoted by Chinese automakers grows, BMW Group is considering launching range - extender versions for some of its models.

BMW's initial plan for implementing range - extender technology is targeted at two flagship models, the X5 and the 7 Series. The ample space in these mid - to large - sized vehicles is well - suited for the layout of the range - extender system. They can accommodate a small power - generating engine without sacrificing interior passenger space or cargo capacity, balancing practicality and technological compatibility. If this plan materializes, BMW will become the first German automaker to introduce range - extender models.

In response to the relevant reports, BMW has only stated that the company is continuously monitoring user usage habits and market trend changes, and re - evaluating the commercial value of different technological routes.

Can BMW regain its sales in the Chinese market by launching range - extender models?

1

Continuous Pressure in the Chinese Market

Currently, BMW's competitiveness in the Chinese pure - electric vehicle market is not high. According to the electric vehicle sales ranking on Chezhuzhijia, from January to October 2025, the sales volume of the BMW i3 was 20,400 units, the BMW iX1 sold 11,300 units, the BMW iX3 had 8,743 units sold, and the BMW i5 sold 6,108 units. The best - selling BMW i3 had an average monthly sales volume of only about 2,000 units.

Apparently, BMW also needs range - extender models to boost its sales. In fact, in June 2025, there were rumors that BMW was considering restarting the development of range - extender models.

At that time, media reports said that in addition to the BMW X5, the sixth - generation X3 and the second - generation X7, which will be launched in 2026, were also being evaluated for the feasibility of range - extender power configurations. BMW's new - generation range - extender technology will be jointly developed with its long - term partner ZF, including two versions: eRE and eRE+. The eRE integrates an electric motor, a planetary gear set, and an inverter; the eRE+ adds a clutch and a differential on this basis, with both power - generating and driving functions, and the internal combustion engine power ranges from 148 to 201 horsepower.

The recent rumors about BMW's range - extender models also reflect the market's attention to the brand.

BMW's previous attempt at range - extender technology ended in failure. Data shows that in July 2011, BMW launched two new models, the BMW i3 and the BMW i8. The BMW i3 was available in both pure - electric and range - extender hybrid versions. The range - extender version added a 650cc twin - cylinder gasoline engine to the pure - electric version. This engine powered the lithium - ion battery, with a pure - electric range of only 130 kilometers and a combined range of 300 kilometers. In 2014, the BMW i3 REx was introduced to the Chinese market as an imported vehicle. In 2018, BMW announced the discontinuation of this range - extender version.

Now, BMW's decision to restart the development of range - extender models is also due to its own pressure. In the first three quarters of 2025, BMW delivered 1.795 million vehicles globally, a slight year - on - year increase of 2.4%. However, in the Chinese market, it delivered 465,000 vehicles, a year - on - year decrease of 11.2%. Meanwhile, China is the only market where BMW's sales declined globally.

At the Q3 2025 earnings investor conference, BMW announced that it will "adjust and restructure" its business in China. Since the sales target in the Chinese market has not been met, BMW has lowered its sales forecast for the Chinese market in the fourth quarter but did not disclose the specific target. It will restructure its dealer network by gradually closing some stores and transforming some low - performing sales outlets into service - only centers, which is expected to be completed by mid - 2026.

At the same time, BMW will also carry out a certain degree of staff reduction. For employees on non - permanent contracts, the company will adopt a strategy of "not renewing contracts upon expiration". It is worth noting that in October 2024, BMW implemented relevant staff reduction measures. At that time, the production at BMW's Tiexi Plant in Shenyang was scaled back, and some production line workers with less than three years of service were informed that their contracts would not be renewed upon expiration.

2

Accelerating Intelligence and Localization

According to the plan, by 2027, BMW will launch more than 40 new models globally, covering all drive types including pure - electric, plug - in hybrid, fuel - powered, and hydrogen - fuel - cell vehicles, targeting all market segments. In the Chinese market, BMW plans to introduce more than 20 new models between 2026 and 2027.

The range - extender models that have recently been in the news belong to the fastest - growing segment in China in recent years. In 2024, the annual sales volume of range - extender vehicles in China reached 1.167 million units, a year - on - year increase of 78.7%, making it the fastest - growing segment in the new - energy vehicle market.

In 2025, the sales growth of range - extender models slowed down. Data from the Passenger Car Association showed that since June 2025, the wholesale share of range - extender models has declined for five consecutive months. In October, the wholesale sales volume was 121,000 units, a year - on - year decrease of 1.9%; the retail sales decreased by 7.7% year - on - year. In the new - energy vehicle wholesale structure from January to October 2025: pure - electric vehicles accounted for 62%, narrow - sense plug - in hybrids 29%, and range - extender vehicles 9%, with the range - extender segment showing a year - on - year decrease of 1.1%.

However, Li Yanwei, an expert from the China Automobile Dealers Association, analyzed that range - extender vehicles are mainly concentrated in the mid - to large - sized and large SUV markets, with relatively high vehicle prices. Considering factors such as battery cost reduction, overall vehicle price, and vehicle positioning, these models still have a cost advantage.

In addition to diversifying its technological routes, BMW, as a multinational automaker, has also chosen localization.

In April 2024, Shenyang City and BMW Group held a signing ceremony for deepening strategic cooperation. BMW Group announced that it will continue to deepen its layout in China, investing an additional 20 billion yuan in the large - scale upgrade and technological innovation of Brilliance BMW's Dadong Plant to achieve the local production of BMW's Neue Klasse models in 2026.

At the Shanghai Auto Show in April 2025, BMW showcased its Neue Klasse concept vehicles. It stated that the first China - exclusive Neue Klasse model will be the BMW iX3L.

At the Guangzhou Auto Show in November, BMW presented multiple models, including the 2026 BMW X5, the all - new BMW M3 Touring, and the electric MINI COOPER PAUL SMITH designer edition. The BMW Neue Klasse technology cluster, including the new - generation electric drive, the BMW Driving Super Brain, the BMW's first panoramic iDrive, and the all - new intelligent driving assistance system, also made its debut at the auto show.

Meanwhile, the launch time for BMW's first Neue Klasse model has been set. The long - wheelbase Neue Klasse BMW iX3, specially tailored for the Chinese market, is undergoing vehicle testing and will enter mass production at BMW's Shenyang production base in 2026, and be launched in the second half of the same year. It will be equipped with the BMW Driving Super Brain, the new - generation electric drive, the BMW's first panoramic iDrive, and the all - new intelligent driving assistance solution.

It is reported that in terms of intelligence, BMW is collaborating with Huawei, Alibaba, and Momenta. The intelligent driving system is developed with Momenta, the cockpit system is integrated with Huawei's HarmonyOS ecosystem (equipped with HUAWEI HiCar), and the AI large - model is jointly developed with Alibaba. This multi - supplier approach gives BMW more autonomy.

Facing the fierce competition and rapid evolution in the Chinese new - energy vehicle market, BMW is diversifying its technological routes while accelerating local R & D and intelligent cooperation. Against the backdrop of Chinese domestic brands gradually establishing themselves in the mid - to high - end market with new - energy vehicles, whether BMW's transformation can gain market recognition remains a tough test.

This article is from the WeChat official account "Visibility in the Auto Circle", written by Wei He, and is published by 36Kr with permission.