BMW is reportedly preparing to reduce its vehicle offerings by discontinuing several niche models, including the high-performance XM plug-in hybrid SUV and the 8 Series.
This strategic shift is aimed at cutting costs as the luxury automaker prepares to introduce its new Neue Klasse technology across 40 models by 2027, according to Automotive News.
The XM, a large ultra-luxury SUV with up to 748 horsepower, has faced weak demand, particularly in China, contributing to its status as BMW's slowest-selling model globally last year with 7,608 units sold. In the United States, XM sales declined by 4.9 percent to 1,878 units in the past year. Despite sharing components with other BMW models, such as the CLAR architecture and the V8 plug-in hybrid setup with the M5, the XM is considered too niche to continue, with no indication of a mid-cycle update or inclusion in the Neue Klasse overhaul.
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BMW may also discontinue the iX luxury electric SUV, which has not met sales expectations. Sales in North America for the iX dropped by 50 percent in the first quarter of 2026 compared to the same period in 2025, with 1,788 units sold in early 2026. The discontinuation of the iX would make way for new models based on the Neue Klasse platform, such as the iX3, which is expected to offer a range of approximately 500 miles on a single charge, as well as the iX5 and iX7.
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BMW has previously reduced its lineup by deciding not to replace the Z4 and 8 Series. Production of the i4 is also slated to end with the arrival of the new i3 saloon, with its cessation expected later this year or in early 2027.
BMW has declined to comment on these reported changes.