BMW Bets on a 31-Inch Cinema Screen to Win Back Chinese Buyers as Shares Languish
Published on 07/27/2026 at 20:42 | Redaktion boerse-global.de
BMW is rolling out an unusual weapon in its fight to reverse a brutal sales slide in China: a stretched version of the X5 SUV with a 31.3-inch 8K theatre-format screen in the rear, aimed squarely at the country's legroom-obsessed back-seat passengers. The long-wheelbase model, which also debuts in an electric iX5 variant, goes on sale early next year and will be built locally.
The move comes as the Munich-based automaker struggles with a 20.4 percent drop in first-half China deliveries — a decline that, while less severe than Mercedes-Benz's 28 percent plunge, still underscores the deepening pressure on foreign brands in the world's largest car market. Local electric-vehicle makers now command over 58 percent of China's new-energy vehicle segment, and the broader passenger-car market shrank by roughly a fifth in the first six months as some 650 new models flooded showrooms.
The X5 Long edition extends the wheelbase by 130 millimeters to 3,165 millimeters, and comes standard with adaptive air suspension. The iX5 electric version boasts a claimed range of up to 1,000 kilometers under China's CLTC cycle — a figure that will almost certainly prove optimistic in real-world driving, but one that matters for local marketing. Driver-assistance technology comes from Chinese AI partner Momenta, and the front-end design differs subtly from the standard model.
Analyst Upgrades Meet a 52-Week Low
BMW shares traded at 57.64 euros on Monday, up 1.37 percent on the day but still hovering just above the 52-week low of 56.40 euros hit on Friday. The stock has lost 38.49 percent since the start of the year, a rout that reflects both China's slowdown and broader skepticism toward German automakers.
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Yet some analysts see value emerging. Deutsche Bank Research reiterated its buy recommendation with a 90-euro price target ahead of second-quarter results due July 30. HSBC's Mike Tyndall upgraded BMW from "hold" to "buy" and lifted his target to 71 euros, arguing that the company's lowered full-year guidance already accounts for China weakness and Middle East conflict-related headwinds. The broader analyst consensus stands at roughly 80 euros.
The earnings report will also need to absorb the cost of a third brake-call-back recall within 12 months, plus the drag from China's luxury tax, which hits BMW particularly hard. On the positive side, EU new-car registrations rose 16 percent in June, fueled by a boom in electric and hybrid vehicles — even as Chinese manufacturers push aggressively into Europe.
The 'New Class' Takes Shape
Beyond the China-specific X5, BMW is pressing ahead with its "Neue Klasse" electric platform. After the i3 sedan's market launch, production of the i3 Touring is slated to begin in the second half of 2027 at the company's Munich headquarters, which will convert entirely to EV assembly by the end of that year — ending more than seven decades of combustion-engine production at the historic site. Outgoing CEO Oliver Zipse confirmed the model at the i3's world premiere, promising that business customers and families would benefit most.
A Sector in Three Speeds
BMW's predicament sits within a broader automotive landscape that looks strikingly different depending on where you stand. Battery giant CATL posted a first-half net profit of 43.28 billion yuan, up 41.98 percent, on revenue growth of 54.80 percent, with its energy-storage business surging 87.54 percent. The company also announced a historic share buyback of 20 to 40 billion yuan — the largest single repurchase in Chinese A-share market history — sending the stock up 4.44 percent to 400 yuan.
At the other extreme, Porsche AG is cutting 5,000 more jobs, bringing total planned reductions to nearly 9,000, after its 2025 profit collapsed 91 percent to 310 million euros. The Stuttgart-based sports-car maker secured plant guarantees through 2035 and 2.1 billion euros in investment for its Zuffenhausen and Weissach sites in exchange, but the shares trade at 43.81 euros — barely above the average analyst target of 45.87 euros.
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XPeng, meanwhile, registered 3,357 new vehicles in Germany in the first half of 2026 — a 215 percent jump — and plans to expand its dealer network from 70 to 110 outlets by year-end. Yet the stock has fallen 38.50 percent year-to-date, reflecting persistent skepticism about Chinese EV profitability despite explosive registration growth.
Deutz AG stands apart, with shares up 17.76 percent since January and 30 percent over 12 months, fueled by a 41.2 percent surge in first-quarter orders and a growing defense business. The question mark hanging over the stock is the dilutive impact of its largest-ever acquisition, FFG, which analysts say is still too uncertain to model reliably.
For BMW, the immediate test comes this week. The X5 Long edition won't hit Chinese showrooms until early 2027, leaving the second-quarter numbers on July 30 as the next catalyst — and the next chance for investors to gauge whether a cinema screen in the back seat can compete with a market that's moving on without them.
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