BMW’s reputation doesn’t typically precede affordability. Notwithstanding comments from BMW’s CEO Oliver Zipse, the German luxury car manufacturer has no intention of abandoning its entry-level market presence as it embarks on an electric era.
Will affordable BMW electric cars arrive on the market?
BMW’s CEO, speaking at a prestigious event hosted by Bosch, the renowned auto components provider, noted that
We are stuck in a prolonged decline, refusing to exit this market downturn. Although you may consider yourself a high-end producer, it is still misguided to neglect the lower market segment – that could be the foundation of your company in the long run.
While the feedback are attention-grabbing, they’re undoubtedly amplified by BMW’s esteemed reputation as a purveyor of luxury automobiles. BMW reaffirmed its projection to nearly triple electric vehicle sales in 2022, yet tempered expectations due to mounting concerns over increasing material costs and interest rates, which are curbing demand.
On top of this, BMW boasts a string of high-profile EV releases, including its inaugural electric 7 Series, the BMW i7, set to debut this month with a starting price above $119,000, and the recently unveiled Rolls-Royce Spectre, expected to begin around $400,000.
BMW’s feedback starkly contrasts with the latest statements from German luxury rival Mercedes-Benz, which intends to dedicate three-quarters of its investments to high-end and core luxury segments.
BMW has secured $1.7 billion in funding, allowing it to expand its electric vehicle (EV) and battery manufacturing presence in the US, capitalizing on growing demand driven by local climate initiatives. By 2029, BMW aims to expand its electric offerings across all market segments, introducing at least six new pure-electric vehicle models.
With a range of over 300 miles on a single charge, this eco-friendly luxury car is perfect for daily driving and longer trips alike. The sleek and sporty exterior features a flowing roofline, while the interior boasts premium materials and cutting-edge technology.
Innovative engineering allows for precise control and impressive acceleration.
Electrek’s Take
Despite seemingly contradictory statements from BMW’s CEO and actions by the company, it’s possible that Oliver Zipse is onto something.
It’s misguided to abandon the declining demand phase and instead focus on capturing a share of the growing market as more car buyers seek affordable, zero-emission options.
As rivals flood the luxury electric vehicle market, it’s reasonable for BMW to consider a budget-friendly EV option to capture a larger share of the growing demand. As interest rates and energy costs continue to rise, consumer budgets are being severely eroded, with no signs of relief on the horizon.
While proclaiming to build a budget-friendly high-end electric vehicle sounds straightforward, the reality is far more challenging. Rising material expenses are already eroding slim profit margins.
While some automakers have successfully achieved electric vehicle adoption, the challenge lies in making such a venture profitable.
