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BMW is reportedly set to streamline its model range by ditching some of its more interesting but obscure cars.

The niche models potentially facing the chopping block include the XM plug-in hybrid SUV and the 8 Series.

The luxury marque is looking to reduce costs while rolling out its Neue Klasse technology across 40 models by 2027, Automotive News reports.

The XM is a large, high-performance ultra-luxury SUV with up to 748bhp. It's priced from £112,835.

The XM was BMW's slowest-selling model last year, with only 7,608 cars sold globally.

Automotive News reports that the XM's poor sales are due to weak demand in China, which could put its future in doubt.

BMW is reportedly considering dropping niche models including the XM plug-in hybrid SUV and the 8 Series

When BMW launched the XM four years ago, it predicted that 23 per cent of customers would come from China, while the US would account for 26 per cent, making it the model's largest market.

In the US, only 1,878 XMs were sold last year, down 4.9 per cent.

It seems that BMW may skip a mid-cycle update, and it is highly unlikely that the XM will receive a Neue Klasse overhaul despite 40 new or updated models arriving by 2027.

Despite being an ultra-luxury model, the XM benefits from economies of scale because it relies heavily on parts shared with other BMW models, including the CLAR architecture (used in models from the 3 Series upwards). Its V8 plug-in hybrid setup is also shared with the M5.

However, the model appears to be too niche to continue, even if production costs can be kept down.

The company has not announced whether the XM has a future, but the lack of any discussion about a facelift suggests it could be discontinued.

It is also speculated that the iX luxury electric SUV could follow the XM to the BMW graveyard, as it has not proved as popular as the German carmaker had expected.

In North America, iX sales fell to 1,788 in the first quarter of 2026, compared with 3,626 in the first quarter of 2025, a drop of 50 per cent.

Culling the iX would make way for the Neue Klasse-based all-electric iX3, which offers a range of around 500 miles on a single charge, as well as the iX5 and upcoming iX7.

BMW has already slimmed down its range by deciding not to replace the Z4 and 8 Series, while i4 production will end when the new i3 saloon arrives. It is expected that i4 production will cease later this year or in early 2027.

BMW declined to comment.

The new BMW iX3 offers buyers 500+ miles of range and it's reported that the iX SUV will be discontinued to make way for the iX3