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BMW Believes Its High-End EVs Are Immune To Electric Downturn

Anis

22 March 2024 at 11:00 AM

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Using its 15 fully electric models, BMW hopes to increase its EV sales to half a million this year.

BMW AG recently predicted that its electric vehicle (EV) market would do well despite a broader market that is struggling with waning global demand for EVs. The company expects a small increase in deliveries of its Rolls Royce, BMW, and Mini models this year and is targeting an 8% to 10% margin for the automotive segment, which is in line with its long-term goals.
The esteemed German luxury car manufacturer has outpaced its premium-segment competitors in the shift to electric vehicles, with models such as the i4 sedan increasing sales to the point where EVs now account for 15% of total deliveries.

BMW expects a small increase in deliveries of its Rolls Royce, BMW, and Mini models this year.

However, the company is still subject to the competitive and economic pressures that hang over the auto industry. Using its 15 fully electric models, BMW hopes to increase its EV sales to half a million this year.
This goal coincides with rivals Mercedes-Benz and Audi readjusting their marketing approaches in the face of a difficult market. Mercedes-Benz anticipates that sales of EVs and plug-in hybrids will remain flat at levels seen last year, while Audi is delaying the introduction of new electric models in order to reduce manufacturing overflow.

One major obstacle to BMW's ambitious plans is its main market, China, where the industry is facing downward pressure due to a slowing economy and a pricing war led by Tesla Inc.
Looking ahead, BMW's move to new EV underpinnings, the "Neue Klasse," which promises to cut battery costs in half from what they are now, demonstrates the company's dedication to both innovation and economy.

However, there are concerns about the viability and timing of this strategic shift given the unpredictability and fierce competition surrounding it.