Profit boost from next-gen electric cars

author: FutureCar Staff    

During a preview event in Munich on September 2, 2023, visitors had the opportunity to take pictures of the 'Neue Klasse' (New Class) project, which showcased 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 photos were captured by Tobias SCHWARZ and published by AFP.

In recent years, auto-industry executives have often complained that electric cars are not as profitable as their combustion-engine counterparts. However, BMW AG Chief Executive Officer Oliver Zipse disagrees. He confidently stated that all of BMW's electric models are currently earning money. Furthermore, Zipse believes that the company's upcoming 'Neue Klasse' battery-powered vehicles, set to be released from 2025 onwards, will be even more profitable.

Speaking to reporters at an event before the IAA car show in Munich, Zipse challenged the assumption that margins of combustion-engine cars are always higher. He emphasized that this belief is simply wrong.

On the same day, BMW unveiled the first prototype of its future 'Neue Klasse' line. This line of vehicles is intended to help BMW compete with Tesla Inc. and maintain strong sales in its most significant market, China.

Zipse proudly revealed that BMW is experiencing growth in China and is currently selling twice as many fully electric cars there compared to rival brands Mercedes-Benz and Audi combined. He also noted that BMW is not affected by the price war in China due to its positioning in the premium segment.

During a separate interview with Bloomberg Television, Zipse expressed confidence in BMW's position in the Chinese marketplace. He stated, "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."

FutureCar Staff