BMW eyes auto division margin of 3-5% in 2028, Bernstein analysts say

Wed, September 30, 2026 at 6:56 AM UTC

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DINGOLFING, Germany, Sept 30 (Reuters) - BMW set a margin target of 3% to 5% for its auto division in 2028, Bernstein analysts wrote in a note on Wednesday, as the German company plans to offer fewer models and increase localization.

By early next decade, BMW hopes to return to a range of 8% to 10%, Bernstein wrote, which would be a steep climb from its most recent result of 2.3%.

"BMW understands the solution is not simply cost-cutting. It is also pursuing growth with innovative products," Bernstein's Stephen Reitman said, adding that its Neue Klasse line-up with the electric SUV iX3 is central to its recovery.

At its capital markets day, BMW confirmed its plans to launch a luxury SUV that sits above the X7 and will push more on its M brand and Alpina models from 2027 to expand its premium portfolio, the note said.

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BMW will release details on its strategy later on Wednesday, a spokesperson said.

As Germany's auto giants are hammered by Chinese competition and US tariffs, BMW's reputation for stability in turbulent times took a hit in June when it issued a shock profit warning.

The car maker announced a redundancy programme soon after, expected to cost some 8,000 jobs in Germany.

(Reporting by Christina Amann, additional reporting by Rachel More, writing by Thomas Seythal, editing by Ludwig Burger)

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