BMW will be following Audi out of the electric Formula E series at the end of next year.
BMW said in a statement on Wednesday that its journey in Formula E was "hitting the home stretch" and the group's strategic focus was shifting.
"When it comes to the development of e-drivetrains, BMW Group has essentially exhausted the opportunities for this form of technology transfer in the competitive environment of Formula E," it said.
BMW said it used Formula E as a technology laboratory for production. The engineers who develop the drivetrains for electric production vehicles are also responsible for the drivetrains in BMW's racecars.
Examples of the successful transfer of technology between the Formula E project and production development include new findings regarding energy management and energy efficiency, the transfer of software for power electronics from racing to production, and an improvement in the power density of the e-motors, BMW said.
BMW's Formula E team is run by U.S.-based Andretti Motorsport.
"We look forward to announcing our own plans for the continuation of our Formula E program in due course," Andretti told roadandtrack.com.
Audi said on Monday it would withdraw as a works team to focus on the Dakar Rally and endurance racing including an eventual return to the 24 Hours of Le Mans.
Formula E's seventh season starts in Chile in January. Other major manufacturers involved include Mercedes-Benz, Porsche, Nissan, Jaguar and PSA's DS Automobile brand.
The series, which is now an FIA-backed world championship, is due to move to a third generation of cars in 2022. India's Mahindra is so far the only manufacturer to have committed to that future.