German luxury carmaker BMW is reportedly set to streamline its vehicle line-up by phasing out several low-volume niche models, including the flagship XM plug-in hybrid SUV and the 8 Series luxury grand tourer.
The Munich-based manufacturer is looking to reduce manufacturing costs as it prepares to roll out its next-generation electric vehicle platform, known as Neue Klasse, across 40 models by 2027, Automotive News reports.
The BMW XM, launched four years ago as a high-performance ultra-luxury SUV delivering up to 748bhp and priced from £112,835, has struggled to attract buyers. It recorded just 7,608 sales worldwide last year, making it the company's slowest-selling vehicle globally.
Weak demand in key international markets has undermined the high-output hybrid's commercial viability. When BMW introduced the model, executives projected that China would account for 23 per cent of global sales, while North America would take 26 per cent as its largest single market.
Sales in the United States fell by 4.9 per cent last year to 1,878 units, while Chinese demand also remained weak. Industry reports indicate that BMW is likely to skip a planned mid-cycle update for the XM and is highly unlikely to adapt the vehicle to its Neue Klasse architecture.
Production Costs and Shared Platforms
Despite its position as a specialized flagship model, the XM shares extensive hardware with existing BMW vehicles to contain development costs. The SUV is built on the modular CLAR architecture used across BMW's core range from the 3 Series upwards, while its V8 plug-in hybrid powertrain is shared with the M5 sports saloon.
However, industry analysts note that such economies of scale have proven insufficient to justify keeping the niche vehicle in production. While BMW has not formally announced the model's retirement, the absence of any public discussion regarding a mid-cycle facelift suggests it will be dropped without a direct replacement.
The all-electric iX luxury SUV may also face retirement as part of the product reorganization after sales fell short of internal expectations. In North America, iX deliveries plummeted by 50 per cent in the first quarter of 2026 to 1,788 units, down from 3,626 vehicles sold in the first quarter of 2025.
Future Electric Line-Up and Neue Klasse
Discontinuing the iX would clear production capacity for BMW's upcoming wave of Neue Klasse electric crossovers and saloons. The new iX3 electric SUV, scheduled to arrive next year, is expected to offer a driving range of around 500 miles on a single charge. It will be joined in the updated portfolio by the larger iX5 and an upcoming iX7 SUV.
The reported cuts extend beyond BMW's luxury SUV segment. The automaker has already decided against developing replacements for the Z4 sports car and the 8 Series coupe and convertible. Meanwhile, production of the i4 electric hatchback is scheduled to end when the new electric i3 saloon arrives, with i4 assembly expected to wrap up late this year or in early 2027.
BMW declined to comment on the reported vehicle cancellations.
