A BMW M5 model is showcased at the 2024 the China International Import Expo in Shanghai. [Photo by Li Fusheng/chinadaily.com.cn]
BMW Group is fast-tracking its evolution into a technology-driven company, with China playing a pivotal role in its strategy.
The German premium automaker has ramped up investment in research and development, navigating challenges in an increasingly competitive and fast-changing market.
In its 2024 financial report, BMW Group reported a record-high R&D expenditure of 9.1 billion euros, a 17.1 percent increase from the previous year.
This investment, accounting for 6.4 percent of total revenue, underscores BMW's push for innovation in electrification, digitalization, and artificial intelligence.
However, financial headwinds persisted, with net profit dropping over a third to 7.68 billion euros in 2024, largely due to sluggish sales in China and Germany.
Despite these challenges, BMW is doubling down on China. Jochen Goller, BMW Group board member for customer, brands, and sales, confirmed the company's plan to launch more than 10 BMW and MINI models in China this year.
"We believe in offering a range of powertrain options and vehicle segments to meet diverse customer needs," Goller said. "While electrification and digitalization are key, driving pleasure remains at the core of BMW's DNA."
China remains a cornerstone of BMW's global innovation strategy. The company has expanded its local R&D footprint, prioritizing software development and AI-driven applications.
Its Neue Klasse models, set to debut in China in 2026, will feature advanced digital architecture and intelligent driving technologies, enhancing user experience while preserving BMW's hallmark driving dynamics.
BMW's Chief Financial Officer Walter Mertl said the company's breakthrough innovations in Neue Klasse models will eventually extend across the entire lineup.
"This will allow us to achieve economies of scale while maintaining profitability," he noted.
Mertl also highlighted BMW's strategic investments in China, including the development of its sixth-generation battery project in Shenyang, Liaoning province.
Sean Green, president and CEO of BMW Group Region China, reaffirmed the company's long-term commitment to the Chinese market.
"China is not just BMW's largest single market but also an innovation hub that drives our global transformation," he said.
On Monday, BMW China announced a strategic partnership with Huawei to develop an in-car digital ecosystem based on the technology company's Harmony operating system.
