Profit boost from next-gen electric cars

author: FutureCar Staff    

During a preview event in Munich on September 2, 2023, visitors were captivated by the 'Neue Klasse' (New Class) project, showcasing new electric vehicle concepts. This event took place on the eve of the opening of the Munich Motor Show (IAA) on September 4, 2023. The excitement surrounding the event was evident as attendees eagerly took pictures of the innovative designs. The project, spearheaded by BMW AG, aims to revolutionize the electric vehicle market.

BMW AG Chief Executive Officer Oliver Zipse made a bold statement, declaring that all of BMW's electric models are now profitable. This marks a significant turning point, as many in the auto-industry have long complained about the lack of profitability in electric cars compared to their combustion-engine counterparts. Zipse further emphasized that the company's upcoming 'Neue Klasse' battery-powered vehicles, set to be released in 2025, will be even more financially rewarding.

Addressing misconceptions about combustion-engine cars being inherently more profitable, Zipse stated, "The assumption that margins of combustion-engine cars are always higher is simply wrong." This statement challenges the prevailing belief and highlights the potential profitability of electric vehicles.

BMW's commitment to electric vehicles was underscored by the unveiling of the first prototype of its future 'Neue Klasse' line. This move is seen as a direct response to the growing dominance of Tesla Inc. in the electric car market. By introducing cutting-edge designs and advanced technology, BMW aims to compete with Tesla and maintain its strong sales in China, its most important market.

BMW's success in China was highlighted by Zipse, who revealed that the company is currently selling twice as many fully electric cars in China compared to rival brands Mercedes-Benz and Audi combined. This achievement demonstrates BMW's growing presence in the Chinese market and its ability to thrive despite the ongoing price war in the region. Zipse attributed this success to BMW's positioning in the premium segment, stating, "We have a solid foundation in the Chinese marketplace. We will never go down to a volume segment just to push volume - because we don't need to."

Overall, BMW's focus on electric vehicles and its commitment to profitability have positioned the company as a formidable player in the industry. With the upcoming 'Neue Klasse' line and its strong presence in China, BMW is poised to continue its success in the electric car market.

FutureCar Staff