As BMW car bodies were seen moving down an assembly line in Munich availing sparking from robotic welders. It was challenging to differentiate between the vehicles to see whether they would be powered by batteries, fuel-burning engines, or a combination of both. According to many analysts, this lack of clarity is not a positive sign.
The German automaker’s electric vehicles are manufactured on the same assembly line as gasoline cars and look almost identical from the outside. This strategy of using a common basic body for electric, hybrid, gasoline, and diesel cars has been viewed as an awkward and ineffective compromise that some established carmakers have adopted to compete with Tesla and emerging Chinese automakers who produce cars designed only for battery power.
However, BMW’s unconventional strategy has paid off. The company sold 376,000 electric vehicles last year, including some under its Mini brand, marking a 75 percent increase from the previous year. In the luxury segment, BMW stood second only to Tesla, which remained dominant with 1.8 million cars. Electric vehicles accounted for 15 percent of BMW sales in 2023, up from 9 percent the previous year.
BMW’s growth comes at a time when electric vehicle sales have been increasing at a slower pace worldwide. What is even more surprising is that BMW, unlike General Motors or Ford Motor, managed to make a profit on the electric vehicles it sold.
BMW’s experience indicates that there is hope for established carmakers as Chinese carmakers like BYD start to export cars to other regions. The popularity of BMW cars among buyers suggests that many value the familiarity and craftsmanship of well-established carmakers and remain skeptical of newer brands.
BMW’s unique approach could potentially serve as a model for other automakers who have been producing vehicles for decades but have struggled in transitioning to battery-powered vehicles. The company’s strategy allowed it time to develop expertise in battery technology and design a range of cars specifically for electric power.
Moreover, BMW’s upcoming line of cars designed to run solely on batteries is expected to offer significant improvements over existing models, such as batteries that store 20 percent more energy per pound and innovative features like a digital display running along the windshield’s bottom edge. These advancements could differentiate BMW from competitors like Tesla, offering buyers new options in the electric vehicle market.
In conclusion, BMW’s strategic approach to electric vehicles has not only been successful but also potentially influential in shaping the future of the automotive industry. By leveraging its engineering expertise, strong brand, and profitability, BMW has positioned itself as a key player in the transition to electric vehicles, setting a path for other carmakers to follow.
