BMW exec says Chinese auto brands are growing rapidly, but at what cost?

BMW board member Dr Joachim Post admits Chinese automakers are expanding rapidly overseas and producing increasingly competitive vehicles, but he warns many are still struggling to turn a profit and says that’s a reality check as they look to challenge legacy brands in Europe and beyond.

Speaking at the launch of the German premium brand’s first modern-day Neue Klasse model, the BMW iX3, Dr Post said China was not the reason BMW decided to reinvent its core platform back in 2021, but acknowledged the pace of technological development in the auto market validated the move.

“At that time, China was not the main reason to do that [Neue Klasse development],” he said. “We are coming from innovation, from technology, to see what is coming up for the future, what could be feasible, how can we be successful? Because we are BMW, we stand for innovation, for features, for functions.”

Even so, Dr Post admitted the speed of innovation in China – especially in batteries, software, and digitalisation – reinforced BMW’s decision to leap ahead.

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Asked whether Chinese automakers pose an existential threat to Western brands, Dr Post compared the situation to the arrival of Korean auto brands in Europe decades ago.

“As always, looking a lot of years ago in Europe, the Korean brands came to Europe, same discussion. [But] finally, to be competitive in the market, to have an attractive product, attractive features, functions, and all over, and have a heritage on a brand, is important. And we will see what’s coming up,” he said.

However, he noted that profitability remains a significant challenge for many Chinese firms.

“The Chinese are going abroad, especially to Asia and some regions, and they will also come to Europe,” said Dr Post. “But to be honest, they also have to earn money for the future. And when you look at what’s going on in the Chinese market, not all of them are really earning money. They have a reality when they come to Europe, and they say that, and we will see what’s coming up.”

Chinese brands such as BYD, GWM, and MG are aggressively pushing into Australia and expanding into Europe with sharply priced EVs and advanced digital features. Dr Post’s comments reflect both recognition of their competitive products and skepticism about whether their business models can be sustained.

BMW’s approach, he argued, is rooted in balancing innovation with profitability and brand strength. That means Neue Klasse technology will underpin both combustion and electric cars globally, allowing BMW to scale fast while maintaining consistency.

While Chinese manufacturers may be grabbing headlines with rapid expansion, Dr Post suggested their long-term survival will depend on more than technology alone.

“To be competitive in the market, to have an attractive product, attractive features, functions… [you must] have heritage on a brand. It is important,” he said.

The BMW Neue Klasse product architecture launched with the new iX3 (pictured above), which will be followed by the i3 early next year. The German brand says Neue Klasse technologies will be incorporated into a total of 40 new and upgraded models between now and 2027.

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