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The circular blue and white BMW logo or roundel evolved from the circular Rapp Motorenwerke company logo, which featured a black ring bearing the company name surrounding the company logo, on a plinth a horse's head couped.

BMW retained Rapp's black ring inscribed with the company name, but adopted as the central element a circular escutcheon bearing a quasi-heraldic reference to the coat of arms (and flag) of the Free State of Bavaria (as the state of their origin was named after 1918), being the arms of the House of Wittelsbach, Dukes and Kings of Bavaria. However, as the local law regarding trademarks forbade the use of state coats of arms or other symbols of sovereignty on commercial logos, the design was sufficiently differentiated to comply, but retained the tinctures azure (blue) and argent (white).

The current iteration of the logo was introduced in 2020, removing 3D effects that had been used in renderings of the logo, and also removing the black outline encircling the rondel. The logo will be used on BMW's branding but will not be used on vehicles.

The origin of the logo as a portrayal of the movement of an aircraft propeller, the BMW logo with the white blades seeming to cut through a blue sky, is a myth which sprang from a 1929 BMW advertisement depicting the BMW emblem overlaid on a rotating propeller, with the quarters defined by strobe-light effect, a promotion of an aircraft engine then being built by BMW under license from Pratt & Whitney. "For a long time, BMW made little effort to correct the myth that the BMW badge is a propeller" (quote by Fred Jakobs, Archive Director, BMW Group Classic). It is well established that this propellor portrayal was first used in a BMW advertisement in 1929 – twelve years after the logo was created – so this is not the true origin of the logo.

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