BMW’s New CEO Nedeljkovi? Takes the Wheel as €10 Billion ‘Neue Klasse’ Bet Meets Lukewarm German EV Subsidies

Milan Nedeljkovi? takes over as BMW CEO amid a 22% stock decline, a collapsing China market, and a €10B+ bet on the Neue Klasse EV platform, while a German subsidy fails to excite luxury buyers.

Milan Nedeljkovi? officially took over as BMW’s chief executive on Tuesday, inheriting a manufacturer that is pouring billions into an all-electric future while its shares hover near 13% below their 200-day moving average. The stock, trading at €74.72, has shed roughly 22% since the start of the year, and the new boss steps into a cockpit crowded with challenges: a collapsing China business, a massive investment in the “Neue Klasse” platform, and a freshly launched German purchase subsidy that analysts say does little for premium brands.

The centrepiece of Nedeljkovi?’s mandate is the Neue Klasse, a pure-electric architecture that has already swallowed more than €10 billion in development spending. Its market launch will determine whether BMW can hold its ground against lower-cost rivals in the mass EV segment. The urgency is underscored by BMW’s struggles in China, its single most important market, where sales tumbled to 626,000 vehicles last year. To arrest the slide, management plans to roll out 40 new models by 2027, including long-wheelbase versions of the iX3 and X5 tailored specifically to Chinese tastes.

At the same time, the German government has switched on a new purchase incentive for electric cars, offering buyers up to €6,000 per vehicle through the Federal Office for Economic Affairs and Export Control. The programme, which carries a total budget of €3 billion and runs until 2029, covers both battery-electric vehicles and plug-in hybrids, applied retroactively to registrations since the start of 2026. While the subsidy is a boon for mass-market players such as Volkswagen, whose smaller EVs suddenly become more price-competitive with Asian imports, observers note that BMW’s customer base is wealthier and less sensitive to a €6,000 grant. The iX3’s regenerative braking can recover up to 134 kilowatts, underscoring the car’s technical prowess, yet analysts remain sceptical that the subsidy will ignite a surge in luxury EV demand.

The market’s mood is already reflected in BMW’s share price. At €74.66, the stock has fallen 22% year-to-date and dropped a further 10% in the past month alone. Bernstein Research maintains a “buy” recommendation, while Barclays rates the shares “underweight”, with the consensus view that near-term upside relative to the broader market is limited. The coming quarterly sales figures will be closely watched for signs that the government’s boost, combined with the new CEO’s strategy, can at least stabilise order intake.

Nedeljkovi?’s appointment comes with a contract lasting until 2031, signalling long-term board confidence. He succeeds Oliver Zipse, who departs after a 35-year career at BMW. Under Zipse, the company pursued a policy of technological openness, offering customers a choice between combustion engines and electric drivetrains. The new chief now pivots decisively toward EVs with the Neue Klasse, even as BMW continues to cater to niche enthusiast segments: on the US market, it recently announced the M3 CS “Handschalter” special edition, priced from around $108,000, marking the swan song of the manual gearbox in this generation.

For Nedeljkovi?, the timing of the German subsidy is fortuitous but far from a panacea. If BMW’s models meet the price caps attached to the grant, sales in the domestic market could get a modest tailwind. Yet with the stock already trading at a 13% discount to its 200-day line, the new CEO will need more than a government handout to steer BMW back into the fast lane.