BMW EVs ramped up

BMW is increasing EV spending after its battery electric vehicle (BEV) deliveries more than doubled during the first half of 2023.

The group expects 2024 BEV demand to increase more than a fifth, after development spending rose to NZ$3.3 billion in Q2.

It cites increased EV interest for investing more than initially planned in e-mobility, also noting increased parts costs.

BMW Group earnings before interest and tax increased 28% to NZ$7.84 billion compared to the second quarter of last year, while automotive returns rose to 9.2%.

BMW will be showcased at the IAA Mobility show in Munich, September 5-10.

Its “BMW Vision Vehicles” focus specifically on individual future topics and demonstrate how BMW is tackling and implementing them, says BMW AG management board chairman Oliver Zipse on the quarter to June 30, 2023.

“Take, for example, the BMW i Vision Circular from 2021 – which was systematically designed for closed-loop material cycles. A circular economy is our vision for the long term – because this will make our company less dependent on valuable raw materials and even more resilient.

“Another example is the BMW i Vision Dee from CES at the beginning of 2023. It demonstrates the potential of what happens when hardware and software merge. The car becomes a digital companion that learns and understands.”

Zipse says electric, digital, and circular will dominate future mobility.

On September 2 the BMW Vision Neue Klasse will celebrate its world premiere – almost 60 years to the day that BMW staked the claim of the Neue Klasse, he says, adding the Vision Neue Klasse is close to standard production (starting 2025 in Hungary) and will be on the roads soon.

“In late July, the new BMW 5 Series began rolling off the assembly line at Plant Dingolfing. It will be released onto the markets towards the end of the year.

“As with the BMW 7 Series, 4 Series, X3 and X1 models, customers once again get to choose between different drivetrain variants.

“With the all-electric i5, the BMW Group will then – as promised – offer at least one BEV model in every core segment. The i5 will help ensure that 40% of all the vehicles we build at our biggest European plant will be fully electric from next year onwards,” says Zipse.

“In addition to the 5 Series, the new BMW X2 is also in the starting blocks, including the BEV variant iX2.”

Zipse says the 5 Series is the first car in Germany to be approved for partially automated driving at up to 130km/h on motorways.

“This exemption means drivers can use the new BMW Highway Assist – which allows them to take their hands off the wheel while driving.”

He says BMW recently opened a new testing site in the Czech Republic, where highly automated driving is tested.

“Our Future Mobility Development Centre in Sokolov provides the ideal infrastructure and reproduces the road conditions of countries from all over the world. The site covers 600 hectares and consists of six tracks.”

BMW is focusing on production trials for fully automated parking.

“Together with our partner Valeo, we are developing solutions for automated valet parking,” says Zipse, adding BMW is concerned with both climate effectiveness and sustainable business success.

“Thanks to our flexibility, we can react quickly to changing requirements in the markets at any time and in any situation. We can provide customers with adequate offers without sacrificing market volume.”

In the first half of 2023, in spite of a somewhat subdued global economy, the BMW Group delivered more than 1.2 million vehicles to customers – an increase of 4.7% compared to the previous year, Zipse explains.

“BMW remains number one in the global premium segment, with over 20% of the market.”

He says all regions are supporting BMW’s growth, with the ramp up of electric models a clear priority, adding BEVs should account for 15% of BMW’s global sales for the full year.

Together with six other car manufacturers, the BMW Group is establishing a new joint venture for a fast-charging network in North America with the goal of building at least 30,000 charging points in cities and on highways, Zipse adds.

“The first stations will be opened as early as summer 2024. The network will be open to users of all brands and will support both CCS connections and NACS technology.”

All BMW Group brands are making their contribution,” Zipse explains.

“Rolls-Royce is launching the all-electric Spectre later this year. BMW Motorrad, in its anniversary year, is now pushing ahead with electrification following the CE 04, with the eParkourer CE 02.

“Mini is reinventing itself from the ground up with the new Mini family. The new Cooper Electric, with its spectacular interior and infotainment system, will be unveiled before the end of the year. We will also be building all-electric Mini vehicles in China going forward.”

A new customer-centric direct sales structure for the Mini brand launched in China in March, and in Europe BMW will be launching its new sales model for direct customer access with Mini in 2024. The BMW brand will follow in Europe in 2026.