BMW's China Showdown: A High-Stakes Battery Bet to Offset US Woes

BMW counters a 50% EV sales drop in North America with a record 16-model launch in China, featuring a new high-voltage battery from Rimac for the i7 sedan.

The world's largest auto market is about to see a major German offensive. BMW is preparing to unveil a record 16 new models, including four world premieres, at the Auto China 2026 show in Beijing. This massive push underscores a critical strategic pivot as the luxury carmaker grapples with a severe downturn in its North American business.

Central to the Beijing showcase is the facelifted BMW i7 luxury sedan, set for its global debut on April 22. This model marks the first tangible result of a new partnership with Croatian battery specialist Rimac Technology. The collaboration has produced a new high-voltage battery pack that integrates BMW's proprietary sixth-generation eDrive technology. At its core are new cylindrical 4695 lithium-ion cells, manufactured by Rimac in a dedicated 15,000-square-meter facility near Zagreb, Croatia, before being shipped to BMW's Dingolfing plant for final assembly.

This new cell technology delivers a 20 percent higher volumetric energy density compared to the previous generation's prismatic cells. BMW promises the upgrade will translate into "significantly" faster charging times and a driving range that clearly surpasses the current i7 xDrive60's 624-kilometer mark. The specific figures will be revealed at the Beijing premiere.

The timing of this technological showcase is no accident. It comes as BMW faces harsh headwinds across the Atlantic. In the first quarter of 2026, sales of electrified BMW vehicles—including both fully electric and hybrid models—in North America plummeted by 50 percent to just 9,856 units. Overall US deliveries fell approximately 4 percent to 84,231 vehicles. Analysts point to the expiration of US consumer subsidies of up to $7,500 at the end of 2025 and newly relaxed emissions regulations as primary causes for the electric sales collapse.

Compounding these sales challenges are rising tariff pressures. BMW's management anticipates a 1.25 percentage-point hit to its EBIT margin this year due to tariffs, as the company initially absorbs the additional costs for vehicles produced in Mexico.

Against this difficult backdrop, China's importance as a strategic counterweight is magnified. The company delivered over 625,000 vehicles there in 2025. For the local market, BMW will present a long-wheelbase version of the iX3, built on its new "Neue Klasse" platform, with a wheelbase stretched by 108 millimeters to 3,005 mm. The broader product offensive is relentless: by 2027, BMW plans to launch 40 new and updated models globally featuring Neue Klasse technology, ranging from an M2 xDrive variant to a fully electric iX4 with no combustion-engine counterpart.

For shareholders, near-term support comes from the dividend. The payout for fiscal 2025 is set at 4.40 euros per share, with an ex-dividend date of May 14 and payment on May 19. Based on a share price of around 79 euros in early April, this represents a yield of 5.57 percent. Investors will also vote at the Annual General Meeting on a proposal to convert 54.7 million preference shares into ordinary shares on a 1:1 basis, aiming to create a more unified and transparent share structure.

The stock has felt the pressure of the US slowdown, declining 14.6 percent since the start of the year. Management's guidance for an operating margin in the auto segment of 4 to 6 percent for 2026 now hinges significantly on the success of its Chinese strategy and the market's reception of its new battery technology. The concrete range numbers revealed in Beijing on April 22 will be the first test of whether Rimac's engineering can help power BMW through its American troubles.