LONDON: BMW CEO Harald Krueger is reported in the German press confirming that the group wants to boost its electric vehicles (EV) and plug-in hybrid cars to 100,000 vehicles by 2017.
The increase will come from its “i” sub-brand which includes the electric i3 and the plug-in hybrid i8.
A range-extended i3 could help the company reach its target, while working on electric Mini and X3 models to be in the market by 2020.
Krueger was quoted saying that electric mobility is coming but demand is not going through the roof at the moment.
BMW is trying to improve sales of the i3 by extending its range by a further 50 percent this year.
BMW, however, is facing stiff competition in the field of electric mobility from other German carmakers.
Mercedes-Benz announced recently that it has created the EQ sub-brand to produce electric vehicles, with the first due in the markets by 2020.
VW has also announced that it will introduce up to 30 electric model, including Audi cars, by 2025.
BMW wants to increase the share of electric and plug-in hybrid models in total production by up to 25 percent in 2025 in order to enhance its position in the premium car market against arch rival Mercedes-Benz which is poised to be the top seller in that segment this year.
Adding other electric vehicles from the Mini and X brands will boost its chances.
However, much depends on demand for electric cars.
BMW has sold only 60,000 i3 models since it launched the electric model in 2013.
Now, it is planning the second-generation which may undertake a different philosophy by extending its range and power.
Tesla, has managed to sell more than 100,000 electric S models during a three-year period up to the end of last year by going for long-range and performance rather than energy efficiency and compact dimensions.
Second generation
The i3 project manager Heinrich Schwackhoefer admitted that the i3, much like other electric vehicles in general, is struggling to gain traction in the market.
But confirmed that the company does not look at it as a failure and expected that a second generation i3 would come soon.
He believes that the i3 is a better car in an environmental sense than the Tesla as it has lower electricity consumption as well as smaller carbon footprint thanks to its lighter battery.
The i3 won the German Golden Steering Wheel award for the most eco-friendly car for the second time in four years.
However, in terms of actual sales, the i3 was fifth among best-selling electric models trailing behind the competition such as the Tesla Model S and the VW e-Golf.
So far this year i3 sales are a third that of Europe’s best selling electric vehicles, the Renault Zoe.
In July this year, BMW introduced a more powerful i3 with a 33KWh lithium ion battery compared to the original 22 KWh version.
The new energy-dense version increases the i3 range to 300 km up from 190 km from cars equipped with the 22KWh batteries.
The result was a surge in sales by 34 percent year on year in July to 2,358 units globally and then by 70 percent to 2,848 units in August.
There was a set-back in sales in September due to delays in production of the i3 range extender, according to a company spokeswoman.
In Germany, just over half of all i3 vehicles sold were equipped with a small combustion engine to charge the batteries and extend the car’s range.
There is no confirmation yet that a successor of the i3 is coming soon but as Germany seeks more electric vehicles on its roads, BMW would feel keen to push ahead with plans to develop the i3 further.
The company still has first-mover advantage in the electric vehicle field as Mercedes-Benz and Audi have yet to even launch their own purpose-built electric vehicles.
The Audi e-tron Quattro would debut in 2018 and the Mercedes EQ won’t come before 2020.
Internal struggle
Within BMW, there are those who are blaming the company for not moving fast enough to develop more electric vehicles.
The company’s top labor representative and deputy chairman, Manfred Schoch said in local interview, reported by Bloomberg, that the company must expand its range to include electric versions of its core lineup, including 3-, 5- and 7-series.
He added “Anything else would be detrimental to the business.”
Most carmakers are aggressively ramping up their electric vehicle lineup in a bid to win customers in shifting markets with tightening emission regulations.
VW is planning to roll out 30 battery-powered vehicles in the coming years, while Mercedes plans at least 10 new electric models.
BMW was an early adopter of electric power and has recently confirmed making battery versions of the Mini and X3 models.
Despite losing its lead in the premium segment to Mercedes-Benz, BMW will keep its revenues and sales on track.
Krueger’s strategy includes production of more lucrative X7 SUV to help finance investment in electric and self-driving cars.
Both BMW and Mercedes-Benz predict that battery and plug-in hybrid cars will account for as much as 25 percent of total deliveries in about 10 years’ time.
For BMW that translates into half a million electric vehicles based on 2.25 million unit sales.
Electric cars have only two percent share of BMW sales at the moment.
