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A New Direction for BMW: Prioritizing Diverse Powertrains

 

Automakers are changing their tune on electric vehicles (EVs). While many once loudly declared the end of the internal combustion engine (ICE), several brands have recently dialed back their EV goals. Citing shifting consumer preferences, they've acknowledged that their initial targets are no longer realistic.


 

BMW has always been cautious about a fully electric future, but it's now taking an even stronger stance. Jochen Goller, a member of the BMW AG board of management for customer, brands, and sales, was quoted in an interview with Autocar India stating, "ICE and combustion will never disappear. Never."

This position might seem surprising given that BMW has invested billions into its new electric-only "Neue Klasse" platform, which will serve as the foundation for many future EVs. The company has also seen considerable success with its current EV lineup in Europe and the United States. However, BMW's strategy is based on a crucial reality: different markets are adopting EVs at different rates.

To address this global variation, BMW is pursuing a diversified powertrain strategy. In addition to the Neue Klasse platform for EVs, the company will develop a new platform exclusively for entry-level combustion-engine vehicles. This is a direct response to markets like India, the Middle East, and parts of Eastern Europe, where EV adoption is low. Offering gasoline-powered cars in these regions is essential for profitability.

Furthermore, a third platform will be introduced for larger SUVs and sedans. This flexible architecture will allow BMW to sell the same model with various powertrain options—all-electric, plug-in hybrid, and traditional combustion—to suit different markets.

Despite this continued focus on gasoline engines, BMW still aims for half of its annual sales to be EVs by 2030. This means that combustion engines will remain a significant part of BMW's lineup well into the next decade. This strategy also considers the European Union's proposed 2035 ban on new car emissions. There is a possibility that the EU may still permit the sale of plug-in hybrids and extended-range EVs after 2035, which would give automakers and charging infrastructure more time to adapt to a fully electric future.

This strategic shift highlights BMW's pragmatic approach to a complex global market, balancing its commitment to electrification with the need to meet diverse consumer demands.

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