What's the location of the blaze?
BMW is gearing up for a significant shift in its global strategy, with a focus on expanding its production base in Eastern Europe and launching its new electric model, the iX3. The sales launch in Europe for the iX3 is scheduled for March 2026, and production is set to commence in Hungary from the end of October 2025.
This strategic expansion aims to strengthen BMW's production base and diversify manufacturing sites. The home of the automotive industry could potentially serve as a lifeboat for BMW, providing a stable platform for its electric expansion.
However, the automaker is facing challenges in China, where the competition is fierce and price wars are intensifying. BMW's sales board member, Jochen Goller, described the competition in China as 'unbelievable price wars'. To navigate this competitive landscape, BMW is adopting a flexible pricing strategy, deliberately delaying the price setting for the Chinese market until the first quarter of 2026.
The battle for China's billion-dollar market will undoubtedly decide the long-term success of many automakers, including BMW. Despite the competitive environment, BMW is optimistic about resuming growth in this key market from 2027 onwards, with the launch of its new fully electric 'Neue Klasse' iX3 model by summer 2026.
Meanwhile, the iX3 is priced at 68,900 euros in Europe, but the price for the Chinese market remains undisclosed. High electrification costs are temporarily pressing on profitability, a concern that is not unique to BMW. Wage uncertainties are weighing on the entire European automotive industry.
In the face of these challenges, the coming months will show whether BMW's double strategy works: electric expansion in Europe while simultaneously defending its position in China. The latest BMW figures speak a clear language: urgent action is needed for BMW shareholders. The BMW share is trading at 82.96 euros, around 9 percent below its 52-week high.
Investors seeking advice on buying or selling BMW shares can find guidance in a free analysis from September 17. The RSI of 26.2 indicates a significantly oversold situation, suggesting potential for recovery. However, investors are advised to carefully consider BMW's strategic moves and the broader market conditions before making any decisions.
In conclusion, BMW's strategic expansion into Eastern Europe and its approach to the Chinese market are key elements of its long-term strategy. The coming months will be crucial in determining the success of this strategy, and investors will be closely watching BMW's progress.
