Strange times indeed. While BMW is simultaneously issuing a profit warning, citing problems in China and US tariffs as the main problem areas, the brand also has reason to celebrate. Bavaria managed to reclaim its sales throne in the third quarter of 2025, usurping Lexus as the leading luxury automaker in the United States. The brand sold 96,886 vehicles, a fairly large gap to Lexus’s 91,609 sold. Third quarter sales represent a 25% increase over this time last year.
What drove the growth? Well, as with BMW’s global sales results – which were similarly strong – the brand’s excellent hybrid models did much of the heavy lifting. Plug-in hybrid models rose 37% in the U.S. in the third quarter. That’s a remarkable achievement considering BMW only sells a handful of PHEVs. Furthermore, most of these are hardly large-volume badges – e.g. E.g. no 3 Series or X3. In the USA, the brand offers the 550e xDrive, the X5 xDrive50e, the 750e xDrive, the M5 and the BMW XM label. Regardless, there were clearly enough well-heeled buyers won over, and the growth in PHEVs offset a 16% decline in EV sales. However, that doesn’t mean BMW hasn’t sold electric vehicles. Nationally, the brand started the fourth quarter with a 28-day supply of electric vehicles, compared to 65 days in mid-2025.
Lexus is now on track for a record year and the prospects are currently at 355,000 vehicles in total. The redesigned GX, a midsize SUV with bodywork and off-road capability, and the even larger Lexus TX are credited with doing most of the groundwork for the brand. Sales in Texas rose 86% year-over-year and were hit last year by an airbag problem. Even GX sales are up 35%, which is incredible considering the truck has already been on the market for three model years.
The other boys
Of course, both brands completely outperformed another German brand – Mercedes-Benz. Mercedes only managed to move 73,500 vehicles in the last quarter, a decline of 13% compared to the previous year. The brand still occupies third place, albeit with a huge gap of almost 20,000 cars. The gap remains constant as we move up to fourth and fifth place. Both Audi and Cadillac sold around 46,500 vehicles in the third quarter. This actually represents a dramatic increase for Cadillac. The GM-owned automaker celebrated its best third quarter ever.
Overall, BMW is looking good for the fourth quarter of 2025, or at least as good as an automaker can in these crazy times. With sales lagging in China and no real end in sight, success must be welcomed in Europe and America. While BMW has already updated its guidance for the remainder of 2025, we expect to learn even more when BMW releases its third-quarter earnings report in November.
Source: Automotive News
