BMW Group (BMW) investor relations material

Strategy and financial update

• Committed to achieving an 8-10% Automotive EBIT margin by early next decade, with an interim target of 3-5% by 2028, driven by operational improvements, cost reductions, and strategic initiatives.

• Focus on premium-only, multi-brand positioning, leveraging NEUE KLASSE technology, and expanding into high-value segments for incremental margin.

• Enhanced regional strategies, especially in China, with increased localization, partnerships, and tailored product offerings to address market shifts.

• Capital allocation remains disciplined, with a strategic dividend corridor of 30-40%, ongoing share buybacks, and a strong balance sheet to support shareholder returns.

• R&D and capex ratios are set to decline below 9% of revenue by 2028, supporting innovation at a structurally lower cost.

Innovation and technology

• NEUE KLASSE platform enables scalable, software-defined vehicles, with a transition toward AI-defined vehicles for enhanced digital experiences and intelligent driving.

• AI is integrated across engineering and business processes, moving from AI-assisted to AI-native operations, delivering measurable productivity and cost benefits.

• Modular software architecture and global R&D network accelerate product rollout, with over 40 models and 12 million connected vehicles by 2027.

• Strategic partnerships with global and local tech leaders enable rapid integration of new technologies and regional adaptation.

• Physical AI and humanoid robotics are being deployed in production, aiming for scalable automation and operational efficiency.

Market and regional updates

• Europe remains a growth region, with 5.4% volume increase in H1 2026, strong market share, and profitable electrification via NEUE KLASSE models.

• In China, despite a 21% market decline, sales performance matched the market; focus is on local R&D, cost reduction, and NEV growth through NEUE KLASSE rollout.

• U.S. and other regions benefit from brand strength, high-end offerings, and tailored strategies to address shifting market dynamics.

• Agency Model and digital ecosystem enhance customer experience, pricing discipline, and loyalty across regions.