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. However, momentum stalled in the fourth quarter, with fourth-quarter sales falling 3.4% compared to the same period last year.
The EV slowdown is real
BMW’s BEV sales are also a warning sign about the industry’s electrification goals. For the full year, BEV sales fell 16.7% to 42,484 vehicles, compared to 50,981 in 2024. The decline accelerated in the fourth quarter as BEV sales fell 45.5% year-over-year – from 13,876 vehicles in the fourth quarter of 2024 to just 7,557 in the fourth quarter of 2025.
Every major electric vehicle model in BMW’s lineup showed weaknesses. The i4, the brand’s most popular electric vehicle, fell 40.8% in the fourth quarter and 14.1% for the full year. The i5 was hit even harder, with a 67% decline in the fourth quarter. The iX, BMW’s electric SUV, fell 35.7% in the fourth quarter and fell 18.2% for the full year.
This reflects declining adoption of electric vehicles across the U.S. market, particularly as consumers have become more cautious about EV pricing and concerns about charging infrastructure heading into 2026.
Plug-in hybrids fill the gap
While pure electric sales fell, demand for plug-in hybrid vehicles rose sharply. BMW sold 25,351 PHEVs in 2025, a significant increase of 30.7% compared to the 19,398 units in 2024. In the fourth quarter alone, PHEV sales reached 7,141 vehicles, but this represents a decrease of 25.6% compared to 9,592 vehicles in the fourth quarter of 2024.
The contrast is striking: as consumers moved away from fully electric vehicles, they increasingly opted for the flexibility of plug-in hybrids. For BMW, this shift reflects the market reality that many buyers are unwilling to fully rely on battery-electric powertrains.
Light trucks are driving overall growth
BMW’s overall sales growth was driven by light commercial vehicle sales, which rose 4.5% in the fourth quarter and 4.4% for the full year. However, car sales continued their industry-wide decline, falling 13.6% in the fourth quarter but posting a full-year gain of 5.1%.
BMW is optimistic about the results, highlighting the brand’s “technology-open approach” and upcoming product launches. The company plans to introduce the all-new iX3 to the US market later in 2026, alongside the recently launched global rollout of the New Class platform.
The iX3 comes at a critical moment. With demand for electric vehicles waning, BMW needs a compelling new electric model to reverse the decline in BEV sales. Whether the iX3 can reverse these trends – or whether consumers will continue to prefer plug-in hybrids – will be a key question for 2026.
