Key Takeaways
- BMW of North America reported a 4.7% increase in full-year 2025 sales, marking the brand’s third consecutive sales record
- Electric vehicle (EV) sales declined 16.7% in 2025, with a 45.5% drop in Q4 sales
- Plug-in hybrid vehicle sales surged 30.7% in 2025, as consumers opted for the flexibility of hybrid models
- Light truck sales drove overall growth, with a 4.5% increase in Q4 and 4.4% for the full year
- BMW plans to introduce the all-new iX3 to the U.S. market in 2026, which may help reverse the decline in EV sales
Introduction to BMW’s Sales Performance
BMW of North America reported full-year 2025 sales of 388,897 vehicles, marking the brand’s third consecutive sales record and a 4.7% increase over 2024. This achievement is notable, as it demonstrates the brand’s ability to maintain momentum in a competitive market. However, a closer examination of the sales data reveals a more nuanced picture. The momentum stalled in the fourth quarter, with Q4 sales declining 3.4% compared to the same period last year. This decline is a cause for concern, as it may indicate a slowdown in demand for BMW vehicles.
The EV Slowdown
BMW’s electric vehicle (EV) sales also tell a cautionary tale for the industry’s electrification goals. Full-year EV sales dropped 16.7% to 42,484 vehicles, down from 50,981 in 2024. The decline accelerated in Q4, when EV sales plummeted 45.5% year-over-year, from 13,876 vehicles in Q4 2024 to just 7,557 in Q4 2025. Every major EV model in BMW’s lineup showed weakness, with the i4, i5, and iX all experiencing significant declines. The i4, the brand’s most popular electric vehicle, fell 40.8% in Q4 and 14.1% for the full year. The i5 was hit even harder, with a 67% Q4 decline, while the iX dropped 35.7% in Q4 and 18.2% for the full year. This decline in EV sales mirrors the trend across the U.S. market, where consumers have become increasingly cautious about electric vehicle pricing and charging infrastructure concerns heading into 2026.
Plug-in Hybrids Fill the Gap
While pure electric sales declined, demand for plug-in hybrid vehicles surged. BMW sold 25,351 plug-in hybrids in 2025, a significant 30.7% increase over 2024’s 19,398 units. In Q4 alone, plug-in hybrid sales reached 7,141 vehicles, though this represented a 25.6% decline from Q4 2024’s 9,592. The contrast is striking, as consumers backed away from fully electric vehicles and instead opted for the flexibility of plug-in hybrids. For BMW, this shift reflects the market reality that many buyers aren’t ready to commit fully to battery electric powertrains. Plug-in hybrids offer a compromise, providing the benefits of electric driving with the security of a traditional internal combustion engine.
Light Trucks Drive Overall Growth
BMW’s overall sales growth was buoyed by light truck sales, which rose 4.5% in Q4 and 4.4% for the full year. Passenger car sales, however, continued their industry-wide decline, dropping 13.6% in Q4, though they managed a 5.1% full-year gain. The growth in light truck sales is a significant factor in BMW’s overall sales performance, as it helped to offset the decline in EV sales. The brand’s ability to adapt to changing consumer preferences and offer a range of vehicles that meet their needs has been key to its success.
Future Prospects
BMW frames the results optimistically, highlighting the brand’s "technology-open approach" and upcoming product launches. The company plans to introduce the all-new iX3 to the U.S. market later in 2026, along with the recently launched Neue Klasse platform rollout globally. The iX3 arrives at a critical moment, as EV demand softens and consumers increasingly opt for plug-in hybrids. Whether the iX3 can reverse these trends – or whether consumers will continue favoring plug-in hybrids – will be a key storyline for 2026. The success of the iX3 will depend on a range of factors, including its pricing, features, and overall value proposition. If BMW can get it right, the iX3 could help to revitalize the brand’s EV sales and position it for long-term success in the rapidly evolving automotive market.