Despite significant investments in electric vehicle (EV) technology, BMW is signaling a continued commitment to combustion engines. This approach reflects a broader industry trend where automakers are recalibrating their EV ambitions in response to evolving consumer preferences and market realities. Jochen Goller, a board member at BMW AG, stated definitively, “ICE and combustion will never disappear. Never,” highlighting the company’s long-term vision that includes both electric and gasoline-powered vehicles.
BMW’s strategy isn’t about abandoning EVs; rather, it’s about acknowledging the diverse needs and readiness levels of different global markets. The company has invested heavily in its Neue Klasse platform, designed to underpin a new generation of electric vehicles. However, this investment doesn’t negate the importance of combustion engines in regions where EV adoption is slower.
The decision to maintain combustion engine production is heavily influenced by varying rates of EV adoption across different markets. In regions like India, the Middle East, and parts of Eastern Europe, the infrastructure and consumer demand for EVs are not yet mature enough to support a full-scale transition. For BMW, continuing to offer gasoline-powered vehicles in these areas is essential for maintaining profitability and market presence. This strategic flexibility allows BMW to cater to local demands while still pursuing its global electrification goals.
Furthermore, regulatory landscapes play a crucial role. While the European Union has set ambitious targets for phasing out new combustion engine car sales by 2035, there’s ongoing debate about the role of plug-in hybrids and extended-range EVs beyond this date. This uncertainty provides BMW with additional incentive to hedge its bets and continue developing efficient combustion engines alongside its EV offerings. The following table illustrates the projected EV adoption rates in key regions:
| Region | Projected EV Adoption Rate by 2030 |
|---|---|
| Europe | 60-70% |
| North America | 50-60% |
| China | 70-80% |
| India, Middle East, Eastern Europe | 20-30% |
BMW is developing three distinct platforms to accommodate its diverse powertrain strategy. The Neue Klasse platform is dedicated to electric vehicles and will underpin models like the upcoming iX3. A separate, combustion-only platform will be created for entry-level cars, ensuring that BMW can continue to offer affordable gasoline-powered options in markets where EV demand is lower. The third platform will support larger SUVs and sedans and will be flexible enough to accommodate all-electric, plug-in hybrid, and traditional combustion powertrains.
This multi-platform approach allows BMW to optimize its offerings for different regions and consumer preferences. By investing in both EV and combustion engine technology, BMW aims to maintain its competitive edge and meet the evolving needs of the global automotive market. The flexibility to produce different powertrain variants on a single platform also provides a hedge against regulatory changes and shifts in consumer demand.
