• Despite gaining in sales in 2024, the XM remains BMW’s least popular model.
BMW retained its title of the world's best-selling luxury brand in 2024, despite a 2.3 percent drop in its deliveries, for a total of 2,200,217 vehicles. Above all, its rivals experienced even steeper declines, with Mercedes-Benz down 3 percent (to 1,983,403 units) and Audi plunging 11.8 percent (to 1,671,218 units).
In fact, BMW saw almost all of its models’ sales drop last year – with two exceptions. Ironically, one of them is the controversial XM.
Progress, but not enough
BMW's 2024 annual report reveals that the XM plug-in hybrid SUV and its polarizing design gained in sales by 15.8 percent, to 7,813 units. Despite that, it remains at the bottom of the brand's sales ranking.
For comparison, the Z4, a niche roadster, sold 10,482 units, for a drop of only 4.3 percent compared to 2023.
Questionable positioning
Some might argue that comparing the XM and the Z4 is not relevant, given their vastly different price points and target audience. But since when is it normal for a small convertible to surpass an SUV in sales volume? The increase in XM sales is not so surprising in itself: it was only available from the spring of 2023, and 2024 was its first full year on the market.
The XM's top market? The U.S.
Of the 7,813 XMs sold in 2024, 1,974 were purchased in the U.S. BMW had predicted that market would represent 26 percent of global demand and it hit the mark, with Americans making up 25.27 percent of buyers so far. However, in North America, BMW does not market the more affordable version, equipped with a 6-cylinder, called the XM 50e.
An exorbitant price compared to more attractive alternatives
In the U.S., the XM starts at $161,425 USD for the 2025 model; in Canada, we’re talking about a price close to $250,000 CAD. In Europe, the 50e version is available from €132,400 (approximately $144,300 USD), a price that is high in itself. Faced with it, the X5 M Competition seems a more reasonable alternative, especially for those not seduced by the bold-slash-questionable design of the XM.
A lost bet
BMW thought it was playing it safe by launching an additional SUV. But this choice was made to the detriment of an otherwise more exciting project: a spiritual successor to the mythical M1. The manufacturer had almost finalized the development of a mid-engine, inline 6-cylinder supercar, before giving it up to focus on the XM.
An uncertain future
The choice of the XM was dictated by accounting considerations: based on an existing platform and sharing its powertrain with the new M5, it was less costly to develop than a completely new model.
BMW followed the same logic with the 3.0 CSL and Skytop, two ultra-exclusive models derived from existing vehicles (M4 Coupé and M8 Cabriolet). The approach reduces development costs and accelerates market launch.
Be that as it may, the XM is now here. Should BMW definitely turn the page on the XM? Nothing is less certain. Enthusiasts are still waiting for a true heir to the M1. The story may not be over...
