Why BMW Is Still Investing In Big Sedans

TL;DR

BMW keeps investing in the 7 Series sedan because it serves as a brand flagship and reputational showpiece, even as SUVs outsell it.

Key Points

• 1.The 7 Series exists more for reputation than revenue. BMW's flagship sedan is used to carry G7 dignitaries in armored form, appears heavily in chauffeured executive transport, and represents the absolute peak of what BMW can engineer — making it a brand showpiece rather than a volume driver.
• 2.SUVs now outsell the sedan, and tariffs make the gap worse. The X7 SUV eclipses 7 Series sales in the US; it's built in Spartanburg, South Carolina, while the 7 Series is imported from Germany and faces a 15% EU import duty, directly hurting its business case.
• 3.BMW's most extensive-ever mid-cycle update introduces Neue Klasse technology. Unveiled in New York in April, the refreshed 7 Series debuts features from BMW's new EV-born Neue Klasse architecture — including a foldable rear cinema screen and ottoman — across ICE, plug-in hybrid, and full EV powertrains to reflect fragmented consumer demand.
• 4.BMW is bullish on US luxury growth despite sedan headwinds. BMW beat Lexus to claim the top US luxury sales spot in 2025, and the US luxury segment is projected to grow over the next decade — giving BMW reason to maintain sedan investment while rivals like Lexus, Audi, Cadillac, and Lincoln have pulled sedans from the US market.