BMW XM may be axed as niche models come under scrutiny - report

With an avalanche of new models on the way, the viability of current niche models is being investigated by BMW.

Insiders have told Automotive News BMW is conducting a review of its lineup as the automaker continues to add new models based on the electric-only Neue Klasse platform. 

Its roll out means that some models, such as the combustion X3 and electric iX3, now ride on different platforms, have distinct styling, layouts and interiors, which all adds complexity to the company's manufacturing process. 

This has resulted in low-volume models coming under close scrutiny, with the XM, i4 and 8 Series most in danger.

The controversially-styled XM plug-in hybrid SUV is under pressure thanks to to weak demand in China. During this first half of 2026, just 2816 XMs were sold worldwide, down 22.4 per cent during the same period last year. 

To put that in context, the all-electric iX sold 12,804 in the same period (down 22.8 per cent), while the Z4, production of which concluded in March, is up 2.8 per cent to 5706. The XM's platform-mate, the similarly-sized X7 managed to notch up 24,208 sales (down 12.8 per cent).

The XM was launched in 2022, and BMW models are typically replaced by a new generation in six or seven years.

As for the i4, this isn't the first time we've heard that its future is in doubt. Back in March, a BMW spokesperson seemingly confirmed the model's demise to Autocar, with the automaker happy to let the electric liftback see out its lifecycle without a replacement.

With the launch of the Neue Klasse-based i3 sedan, the Bavarian car maker sees no need to have two EVs competing in the same segment. The i4 is scheduled to remain in production until some time in 2027 when its spot at the Munich plant will be taken up by the yet-to-be-revealed i3 wagon.

While the i4 liftback is doomed, the i4 nameplate will live on, with spy photos of a Neue Klasse convertible emerging last month.

Then there's the 8 Series. In April an official told CarBuzz production of the high-end coupe, convertible and Gran Coupe had ceased.

There was hope the model might be revived to serve as a basis for the relaunched BMW Alpina brand. Indeed, Vision BMW Alpina concept unveiled in May seems to be based on the 8 Series coupe.

Despite this, a spokesperson told Automotive News the car's technology is now eight years old and updating it with tech from the Neue Klasse models wasn't straightforward or feasible. 

An earlier report indicated the 2 Series Active Tourer wouldn't make it through to a third generation, meaning its lineage would end in 2029.

A subsequent report by BMW Blog suggests the timeline has been moved up to October 2027. Practical as it is, the Active Tourer has been always been a left-field addition to the range, with BMW Australia electing not to sell the second-generation model locally. 

One niche model has already headed out the door, with production of the combustion X4 concluding at the end of 2025. It will, however, be replaced by the iX4, a "coupe" version of the iX3.

Sadly there's no replacement, direct or indirect, of the Z4 convertible, the last one of which rolled down the line in March this year.

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