BMW steps up e-mobility

The BMW Group is bringing forward its e-mobility plans.

Not only will its BMW i4 be launched three months ahead of schedule, but the group also intends for its fully electric models to account for at least 50% of global deliveries by 2030, Mini to become a fully electric brand by the early 2030s and it expects about 90% of market segments to have fully electric models by 2023.

“The BMW Group has ambitious plans for 2021,” BMW AG management board chair Oliver Zipse. “We have started the new year with strong momentum and are aiming to return to pre-crisis levels as swiftly as possible – and go even further.

“We have a clear roadmap for making the transformation of our industry a real competitive advantage for BMW in the coming years; uncompromisingly electric, digital and circular.”

A significant increase in group profit before tax is forecast, and BMW’s ‘Neue Klasse’ (New Class) will spearhead its product range from 2025.

BMW’s automotive segment is expected to a record a solid increase in deliveries. The segment EBIT margin is forecast to improve to within a range of 6% and 8% for the full year 2021.

Moving towards fully electric connected mobility is covered in three phases.

The third phase is from 2025, at which stage the BMW Group’s product range will be realigned to its “Neue Klasse” – characterised by a completely redefined IT and software architecture, a new generation of high-performance electric drivetrains and batteries and a new approach to sustainability across the vehicle life cycle.

Other key factors driving the transformation include software and the digital interaction with the vehicle.

The BMW Operating System 8 is installed for the first time in the new BMW iX.

By the end of 2021, with well over two million units, the BMW Group says it will have the world’s largest fleet of vehicles capable of installing new or upgrading existing functions over the air.

Customer offers will be structured more flexibly, enabling functions to be purchased outright or rented for three years, 12 months or just one month.

“Regionalisable technology stacks” will be capable of optimally customising a vehicle’s operating system to suit the varying requirements in each of the world’s major regions and their digital ecosystems, providing continuous upgrades.

The Neue Klasse use of secondary materials (such as recycled steel, plastic or aluminium) will be sharply increased, aiming to minimising raw materials extraction.

“We are intent on ensuring that the ‘greenest’ electric car on the market is made by BMW,” Zipse says.

Deliveries of fully electric models are targeted to grow by well over 50% annually on average by 2025.

A dozen fully electric models should be on roads worldwide by 2023.

This year, the three models already on the market – the BMW i3, the Mini SE and the BMW iX3 – will be joined by the BMW iX and the BMW i4.

“The launch of the BMW iX and the BMW i4 will signalise the start of our technology offensive in 2021; these two all-electric vehicles will set the benchmark for BEVs going forward,” Zipse says.

Fully electric versions of the BMW 5 Series and the BMW X1 will follow, together with other models such as the BMW 7 Series and the successor to the Mini Countryman.

Electric mobility was a key growth driver in 2020 with 192,662 electrified BMW and Mini brand vehicles sold worldwide, one third more than in the previous year (31.8%).

BMW business performance for the financial year 2020 clearly reflects the impact of the corona virus pandemic.

Due to worldwide lockdowns lasting several weeks, vehicle deliveries to customers fell by a moderate 8.4% to 2,325,179 units. Defying this trend, growth was particularly strong in the upper luxury segment, with deliveries up by 12.4% to more than 115,000 vehicles, mainly reflecting the performance of the 7 Series and the 8 Series as well as that of the BMW X7 in its first full year on the market. Indeed, sales in this profitable segment have soared by more than 70% since 2018.

Group revenues decreased moderately to 98,990 million euros (down 5%) and profit before tax fell to 5,222 million euros (down 26.6%) partly reflecting unfavourable currency factors.

The BMW Group expects business to develop positively and the risk situation to remain stable in the financial year 2021, more coming from its annual general meeting on May 12.