BMW Bets €100 Million on Steyr EV Components While Analysts Spar Over Q3

BMW plans a EUR 100M+ Steyr plant line for Gen6 EV power electronics by 2029, keeping over 1M combustion engines yearly.

BMW is preparing to sink more than EUR 100 million into its Steyr plant in Austria, where a new production line for power electronics and inverter components is slated to come online by summer 2029. The project gives the site a foothold in the electric drivetrain supply chain — a role that will sit alongside, not replace, its existing engine operations.

A New Line, Not a Farewell to Combustion

Under the plan, Steyr will handle both the upstream supply chain and final assembly of the power module for BMW's Gen6 electric motors. The company intends to install a fresh assembly line inside a cleanroom, backed by the necessary infrastructure. Notably, the investment covers drivetrain components rather than complete vehicle assembly.

The plant's traditional workload is untouched. According to BMW, Steyr will keep churning out more than 1 million gasoline and diesel engines every year, with 4,700 people on the payroll. That dual-track setup — combustion and electric side by side — defines the site's future profile. The long runway to 2029 also signals that this is a structural industrial decision rather than a near-term earnings catalyst.

Europe's EV Surge, China's Drag

BMW's third-quarter 2026 delivery figures paint a mixed picture of the demand backdrop. Global all-electric shipments rose 7.2% to 110,257 vehicles, but the growth was far from uniform. Europe provided the thrust, while weakness in China weighed on total passenger car deliveries.

On the continent, fully electric deliveries jumped 37.5% to 81,941 units, lifting their share of BMW Group deliveries there to 34.7%. Sales chief Jochen Goller pointed to sustained strong orders for battery-electric vehicles — useful context for the capacity build-out, though it says nothing definitive about how well the Steyr line will ultimately be utilized.

Two Analysts, Two Very Different Targets

Against that uneven demand picture, the investment case hinges on earnings power. JPMorgan reaffirmed its "Overweight" rating yesterday, with analyst Jose M. Asumendi forecasting third-quarter revenue of EUR 29.7 billion and operating profit of roughly EUR 1.68 billion. The price target stands at EUR 82. Those are projections, not reported results.

Jefferies struck a more cautious note on Sunday, keeping a "Hold" rating and a EUR 60 target. Analyst Philippe Houchois expects weak figures from European manufacturers and did not rule out further provisions at BMW. The gap between the two views leaves the stock caught between optimism about the auto business and anxiety over additional charges.

Deliveries and a Severance Snag

The quarterly shipment data offer little comfort for the bulls. Group-wide deliveries fell 6.3% worldwide, dragged down by a 24.8% plunge in China — far worse than the company's overall performance. Europe and the US managed gains, and electric vehicles advanced, but the regional and powertrain split is anything but a clean recovery story.

On the personnel front, Handelsblatt reported that BMW launched its severance program, with tens of thousands of employees receiving offers by email on Thursday. The volume of traffic briefly knocked out the company's HR portal.

What the Share Price Move Really Says

BMW shares added 3.1% yesterday, and media reports suggest a pre-close analyst call on Tuesday midday may have helped soften previously downbeat expectations. That link is not confirmed — the explanation for the move remains speculative. What matters more is that the rally reflects a possible reassessment of expectations rather than proof that the business slump is over. The delivery figures reported so far are preliminary and subject to revision, and any sentiment boost from the analyst call will ultimately have to be validated by the actual numbers.