BMW V8s survive thanks to EV sales

BMW says its V8 engines have a long-term future, with strong sales of fully electric models giving the German luxury brand plenty of breathing room under Australia’s New Vehicle Efficiency Standard (NVES) laws.

Solid demand for BMW EVs has cut the brand’s average CO2 emissions in Australia and means there is no threat to iconic six-cylinder models like the BMW M350 and M3, while a V8 version of the new-generation X5 could even make a return.

Vikram Pawah, chief executive of BMW Group Australia, told carsales that EVs accounted for nearly 20 per cent of local BMW sales in 2025, helping to balance emissions from the high-performance models that many buyers still want.

The local BMW boss said the brand had not needed to withdraw any of its models from sale because of NVES rules and was confident that a broad choice of petrol, diesel, hybrid and electric powertrains could remain on sale even as emissions targets get tougher.

While the NVES laws enacted by the Albanese government are tough, and get stricter every year, they do not ban the sale of combustion engines. Instead, they measure each car brand’s average CO2 emissions and apply a penalty for a result that is too high.

In effect, the more EVs a brand sells in Australia, the more the output of high-emitting petrol and diesel models is counterbalanced.

BMW Australia boss Vikram Pawah said that the brand’s longstanding ‘Power of Choice’ philosophy, whereby buyers can select from petrol, diesel, hybrid and EV choices, often in the same model range, had put the Bavarians in a strong position.

“We can absolutely create that balance [of powertrains] as an organisation, and that’s what we intend to keep,” he said, pointing to healthy sales of both EVs and BMW M performance vehicles.

Asked if BMW Australia would eventually need to scrap big engines, or alternatively increase prices to pass on NVES penalties to customers, Pawah said neither solution was imminent.

“At the moment, at BMW, we’re not so much worried about it,” he said, adding that electric variants were attracting take-up rates approaching 35 to 40 per cent in some parts of the range, creating even more breathing room for the combustion cars.

Globally, BMW M chief Frank van Meel has confirmed that the company’s six-cylinder and V8 engines are being upgraded to meet the European Union’s Euro 7 emissions requirements, extending their viability into the 2030s.

But while BMW Australia hasn’t scrapped any V8s locally, it remains an open question whether it will continue to launch newly available eight-cylinder cars here.

BMW’s stance on keeping big engines isn’t unique in Australia, and there has been a rush back to V8 power among the German set in recent months.

Audi is bringing the SQ7 back in new-generation form with V8 power, while Mercedes-AMG says it plans to retain V8s into the 2030s.

By contrast, Lexus has all but eliminated its V8s in favour of turbocharged six-cylinders.

The next big test for BMW Australia is whether it continues to launch all-new V8 models in this country rather than just keeping existing cars on sale.

Overseas, the new X5 line-up will gain a mild-hybrid M60 variant in 2027, and BMW Australia has expressed interest in it – but it is not ready to confirm the return of the X5 V8.

BMW Australia might be waiting on the announcement of a V8 plug-in hybrid X5, which remains a rumour rather than a reality.

There is precedent. Today’s BMW M5 and XM models use plug-in hybrid versions of the ‘S68’ V8 engine, slashing on-paper CO2 emissions while lifting power… and weight.

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