BMW Reclaims Leadership in the U.S. Luxury Market
In a paradoxical twist, BMW has simultaneously issued a profit warning while celebrating a major milestone: reclaiming the title of top-selling luxury automaker in the United States for the third quarter of 2025. Despite citing economic headwinds in China and new U.S. import tariffs as key challenges, the Bavarian marque managed to surpass Lexus with a total of 96,886 vehicles sold between July and September — a commanding lead over Lexus’s 91,609 units.The results represent a 25% year-over-year increase for BMW, signaling a resilient performance in the face of a volatile global market. The brand’s renewed dominance underscores its ability to pivot strategically amid shifting consumer trends and industry-wide uncertainty.
Hybrid Power Fuels BMW’s Momentum
The key driver behind BMW’s growth story? Its expanding lineup of plug-in hybrid electric vehicles (PHEVs). The automaker saw a 37% surge in hybrid sales in the U.S. market during Q3 — a remarkable achievement considering its PHEV portfolio remains relatively small.Available hybrid models such as the 550e xDrive, X5 xDrive50e, 750e xDrive, M5, and the high-performance BMW XM Label proved to be standout performers. These models helped offset a 16% decline in all-electric vehicle (EV) sales, demonstrating a shifting consumer appetite toward performance-oriented hybrids that balance efficiency with driving dynamics.
Interestingly, despite the dip in EV demand, BMW’s electric inventory remains tight. The brand entered Q4 2025 with a 28-day supply of EVs—a sharp reduction from 65 days earlier in the year—indicating consistent turnover and relatively healthy demand in the premium EV sector.
Lexus Retains Strength Despite Losing the Crown
While Lexus ceded its top position to BMW this quarter, the brand is still poised for a record-breaking 2025, with projected total sales reaching 355,000 units. The Toyota-owned luxury marque continues to benefit from its strong SUV lineup, particularly the redesigned GX and the all-new Lexus TX.The Lexus TX has been a major contributor to the brand’s momentum, recording an 86% year-over-year sales increase after overcoming last year’s airbag-related delays. Meanwhile, the GX SUV saw sales jump 35% — an impressive feat for a model now in its third production year. These strong performers highlight Lexus’s continued dominance in the luxury SUV market, even as BMW gains ground overall.
Industry Outlook: Hybrids Outpace EVs in a Shifting Market
The broader market trend is clear: hybrids are outpacing fully electric vehicles in the luxury segment, driven by customer concerns around charging infrastructure, range anxiety, and affordability. BMW’s performance in Q3 demonstrates how strategic diversification — offering hybrids, EVs, and traditional models — can serve as a stabilizing force amid fluctuating consumer preferences.Despite global challenges, BMW’s U.S. success underscores its adaptive strategy and brand strength. As automakers continue navigating regulatory changes and evolving energy transitions, BMW’s hybrid-led resurgence may signal a new equilibrium in the race toward electrified luxury.
