BMW’s Dual-Pronged Push: A New i7 and a China Offensive Amid Margin Squeeze

BMW unveils i7 with 720km range and new battery tech, targets China with iX3, as Q1 sales dip and tariffs squeeze margins.

The Bavarian automaker is firing on two strategic fronts at once — rolling out cutting-edge battery technology in its flagship electric sedan while simultaneously plotting a comeback in the world’s largest car market. But both initiatives are unfolding against a backdrop of sliding sales, tariff pressure, and a stock that has shed roughly 17% of its value since January.

A Range Leap for the i7

BMW used the Beijing auto show to unveil the facelifted i7, its electric luxury saloon, now equipped with sixth-generation round cells. The new 112.5-kilowatt-hour battery pack pushes WLTP-certified range beyond 720 kilometres — a significant jump over the outgoing model. Charging speed has also been upgraded to 250 kilowatts, allowing an 80% top-up in under half an hour.

The technology previews what BMW calls its “Neue Klasse” architecture, though the i7 itself remains a hybrid of old and new. It combines fifth-generation drive components with the latest battery cells — a modular approach the company plans to extend to 40 more models and updates by the end of 2027. The iX3, a crucial model for China, will share the same cell technology.

Production of the updated i7 will take place at the Dingolfing plant, BMW’s lead facility for luxury models. Order books open at the end of May, with first deliveries scheduled for July. The entry-level price sits at just over €121,000. BMW has also simplified public charging: a stored credit card in the vehicle now authorises payment at fast-charging stations, eliminating the need for a separate card.

The China Chessboard

While the i7 steals the technological spotlight, the strategic centre of gravity for BMW remains China. Analyst Tom Narayan of RBC, who rates the stock “Sector Perform” with a €84 price target, is focused on the fully electric iX3. BMW has developed a long-wheelbase version specifically for Chinese buyers, aiming to reclaim market share lost to the Tesla Model Y and the Xiaomi YU7.

The iX3 is expected to carry a higher price tag than its rivals, but Narayan points to BMW’s strong brand reputation in Beijing as a counterweight. The company is deepening local partnerships, including a collaboration with artificial intelligence specialist Momenta, to tailor its offerings to Chinese preferences.

The urgency is clear. BMW sold roughly 566,000 vehicles worldwide in the first quarter — a slight year-on-year decline. In the US, electric vehicle sales collapsed after the end of government subsidies. Germany, by contrast, posted growth of nearly 11%.

Margins Under the Microscope

On May 6, BMW will release detailed first-quarter results, offering investors a clearer picture of how tariffs are eating into profitability. For the full year, the automaker has guided for an EBIT margin in its automotive segment of between 4% and 6% — well below its long-term target range.

The stock currently trades at around €80, well off its December high of roughly €97 and below its 200-day moving average. RBC’s €84 target implies only modest upside from current levels.

A New Chairman and a Simplified Share Structure

The annual general meeting on May 13 marks a watershed moment. Shareholders will vote on a proposal to convert non-voting preference shares into ordinary shares, creating a single class of stock. The move aims to simplify BMW’s capital structure for investors.

For the past financial year, the board has proposed a dividend of €4.40 per ordinary share and €4.42 per preference share. The AGM also signals a changing of the guard: Milan Nedeljkovi? will succeed Oliver Zipse as chairman of the board of management.

The meeting gives the new leadership a platform to defend the margin outlook for 2025 — a task made no easier by the mixed signals from the first quarter. BMW is betting that better batteries, a sharper China strategy, and a cleaner corporate structure can turn the tide. Whether that bet pays off will become clearer in the months ahead.