Provenance and the ‘heart of joy’ – BMW’s new beginning
By Simon Harris
BMW appears to be finding a smoother path through the current industry turbulence than some of its rivals. While much of the sector is currently locked in a high-stakes standoff with government over ZEV mandate targets, the Munich brand is coming off a successful 2025 where it met its initial regulatory requirements. The focus has now shifted to maintaining that momentum with the launch of the Neue Klasse era and its flag-bearer, the new iX3.
Speaking with Andrew Jago, general manager for corporate sales at BMW Group UK, the sentiment is one of cautious optimism, although he is under no illusions about the complexity of the task ahead. “It’s not easy out there,” Jago admits. “I’d be wrong if I thought it would be. It’s no walk in the park.”
This frank assessment acknowledges that even a brand with such strong corporate gravity isn’t immune to a market where, as the SMMT recently highlighted, manufacturers are collectively spending billions to ‘buy’ compliance through heavy discounting.
As OEMs are using various strategies to hit their targets, BMW is attempting to lean on a product-led approach and a surprisingly resilient multi-powertrain portfolio that seeks to match diverse needs in the modern corporate sector.
The arrival of the iX3 marks a significant moment for BMW’s corporate appeal. Jago notes that the brand essentially cleared all examples of the previous, ICE-derived model last year as part of a managed run-out phase, making the new car’s arrival next month a vital injection of volume into the heart of the premium SUV segment. Rather than merely replacing an old model, the brand introduced a bespoke electric architecture that changes the conversation around what an EV can do for a fleet.
Crucially, Jago argues that the car isn’t just a corporate tax-saver. He highlights a positive story of strong private demand, something he suggests indicates a natural appeal for the product that should reassure residual value (RV) setters who are currently nervous about EV volatility.
“To have such strong private demand on electric product should be giving us real confidence,” Jago explains. “I think the positioning of the product means we’re not taking a position of needing to put a vastly inflated premium on the electric powertrain. The market has proved that’s not something you can justify doing anyway.” This pricing strategy is perhaps a nod to the reality that EV price parity is now a regulatory necessity rather than a luxury, even for premium OEMs.
With a headline figure of 500 miles of range, the iX3 moves the benchmark for what’s expected in this sector. “If you get that positioning right, you don’t have to go out and buy the market,” Jago says. “The product is the proof point. When you’ve got that range story, that interior packaging and that technology – usable technology, not just gimmicky – it just feels right.” He points to the ‘Heart of Joy’ interface and the non-distracting Panoramic iDrive display as key elements that make the car intuitive for both existing BMW loyalists and brand conquest drivers.
“The products have made my decision to come here very easy, but it’s the basics done properly that will keep us at the front.”
Andrew Jago, general manager for corporate sales, BMW Group UK
Plug-in hybrids (PHEVs) remain a vital, if occasionally misunderstood, tool in the BMW armoury, despite the industry-wide push for pure electric. With 11 PHEV models currently available across the range, the demand remains remarkably healthy, particularly among high-mileage users or those whose domestic circumstances don’t yet suit a full BEV.
“About 20% of salary sacrifice is still PHEV, which you wouldn’t think,” Jago notes. While the arrival of 500-mile EV ranges may eventually accelerate the trend away from combustion, BMW is maintaining a ‘technology-open’ view for the foreseeable future. “As long as there is demand for PHEV, we will continue to offer it,” he confirms.
However, this persistence carries a cautionary note for fleets regarding the 2028 Benefit-in-Kind (BiK) hike. Many businesses might be sleepwalking into a significant tax hit, a point Jago counters by suggesting the leasing industry has stepped up its game. “The funders in the main are pretty good at giving an illustration of what the implications are for year one to four,” he says.
Recent technical improvements to the entry-level electric range, including the iX1, iX2 and the Mini Countryman, have provided another significant boost to BMW’s optimism for 2026. In the world of rigid fleet procurement, a single mile can be the difference between a car being on a policy or barred from it entirely.
“Once you go over 300 miles of range, it opens you up to more fleet policies,” Jago explains. “There are a number of fleets out there that have a policy that won’t take cars below 300 miles of range, but now we can pass that.” This has resulted in a buoyant start to the year for both BMW and Mini in the corporate sector, even as the wider market remains relatively flat. It proves that the range anxiety of fleet managers is often a binary gatekeeping exercise; once the threshold is met, the floodgates for orders can open.
BMW’s provenance and established foundations remain its greatest competitive edge in a marketplace currently dominated by talk of emerging competitors from the Far East. As a relative newcomer to the BMW business, Jago is clear about what it takes to maintain leadership in an environment where the rules of engagement are changing monthly and new entrants are hungry for share.
“Everybody’s talking about all these emerging competitors, but they don’t have the provenance that we have; they don’t have the network that we have,” he says. He points to the brand’s consistent performance in independent reliability surveys as evidence that their success isn’t a fluke.
‘Neue Klasse allows us to demonstrate that we’re not just catching up with Far East technology and competition, but we’re actually staying ahead of the curve. To be the first brand to market with 500 miles that gives me real confidence that we aren’t just resting on our laurels. Nobody can afford to right now.”
Both BMW and Mini have recorded a buoyant start to 2026
Stability in the used market is a critical part of maintaining new-car momentum. Jago is a “big fan” of second-life leasing, a topic he is actively pursuing with both BMW’s captive finance houses (BMW Financial Services and Alphabet) and major external funders such as Lex and Tusker.
For the SME sector in particular, the proposition of a fully maintained, used premium EV versus a new, unknown emerging brand is a compelling one. “It’s about having that used leasing proposition,” Jago says. It offers the backup and confidence that a used EV won’t result in unexpected maintenance costs – the user simply pays the rental, insures it and charges it. This circular approach to the vehicle’s life is essential for maintaining the residual values that keep new-car lease rates competitive. Without a healthy second-hand market, the front-end lease costs for fleets become unmanageable.
Refining the ‘basics’ of the fleet experience is ultimately Jago’s primary strategy for 2026, rather than just relying on headline-grabbing tech. This includes Proactive Care within the BMW app, which uses telematics to alert drivers to potential faults, such as tyre issues, before they result in a roadside recovery situation.
“It’s about making sure that our network of corporate certified retailers continues to develop their skills,” Jago explains. “If there are lead times in a workshop, they’ll do everything to slot in a corporate driver because they know vehicle downtime is critical. Those are the little things that make a difference in adding real value to the corporate driver.”
For Jago, the goal is to ensure the relationship with the driver remains the priority, even as the technology shifts beneath them. By focusing on the fundamentals – reliable networks, high-mileage capability and proactive maintenance – BMW aims to ensure its customers feel like valued individuals rather than just a commodity in a shifting regulatory landscape. “The products have made my decision to come here very easy,” Jago says, “But it’s the basics done properly that will keep us at the front.”
