BMW CFO sees ‘very good order’ situation with EVs, projects 400,000 pure electric vehicle sales
BMW is the latest automaker suggesting a wave of EV buyers is expected to hit the market in the coming year. The German automaker’s CFO, Nickolas Peter, said in a video conference Monday he expects pure electric vehicle sales to reach 400,000 next year as demand continues building and supply chains ease.
BMW set to hit higher end of electric vehicle sales goal
BMW’s Chief Financial Officer (CFO) says it’s been a turbulent year for the German automaker, but things are looking up from here.
Lockdowns in China and supply chain issues during the first half of the year cut into profits. Furthermore, Germany and the UK saw demand slow as rising energy prices shook the markets, while France, Italy, and Spain remained stronger.
When asked about gas prices and energy supply due to the war in Ukraine, the German automaker’s CFO responded, saying, “the gas issue will not have any direct impact on us this year,” as BMW has already cut back its gas usage in Germany and Austria by 15% and will reduce further if needed.
BMW expects to continue seeing pressure this year, yet in 2023, it believes it can take another massive leap in electric vehicle sales. The automaker expects between 240,000 to 245,000 electric vehicle sales this year, more than double that of 104,000 in 2021, and it is hitting its goal of a 10% EV share of overall sales.
The luxury automaker expects that number to rise even further to about 400,000 in 2023 as buyers continue demanding pure electric vehicles.
In North America, BMW currently offers two pure EVs, the BMW iX SUV and the BMW i4. In China, the automaker also offers the BMW i3 and its first-ever fully electric 7-series, the BMW i7 sedan, which is slated to release in North America in 2023.
On top of this, BMW is launching its Neue Klasse (new class) vehicle platform specifically for electric vehicles in 2025 for its “next-generation” EVs.
By the end of the decade, BMW looks to achieve 50% electric vehicle sales of its overall total.
BMW said it sold 75,891 electric vehicles in the first half of 2022, more than doubling from 2021. The automaker’s CFO seems confident that electric vehicle sales will continue picking up this year and into 2023 after mentioning demand picking back up in the third quarter.
With several highly anticipated EV releases (Rolls Royce Spectre, BMW i5, MIINI Countryman) next year, I wouldn’t doubt BMW’s ability to meet its target. However, the question going forward will be how well it can manage its supply chain and ramp production of these vehicles.
Demand isn’t the issue. BMW mentioned the “high desirability of its pure electric models among customers worldwide” in its first half electric vehicle sales release. The issue will come down to resolving the supply chain bottlenecks, which have been disrupted since the pandemic.
The energy crisis in Europe is adding fuel to the fire, as several critical auto parts suppliers are being affected and passing on higher costs to automakers.
Other German automakers, including Volkswagen and Mercedes-Benz, have both prepared for the worst, increasing orders from suppliers outside the affected area, according to Reuters. Will BMW be next to follow? If they are going to hit their aggressive electric sales targets, I wouldn’t be surprised to see them do the same in the near future.
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Tesla (TSLA) surges on strong sales in China
Tesla (TSLA) stock is surging amid data coming out of China, showing that the automaker will likely deliver a strong quarter in this important market.
At the time of writing, Tesla’s stock is up 6%, while the market is up about 1%.
This surge comes after the China Merchants Bank International released car insurance registration data.
The data shows 106,915 new Tesla vehicles registered in China between January 1 to March 19.
It is tracking ahead of the last quarter, which was a record quarter for Tesla in China, with 122,038 cars delivered.
With almost two weeks left in the quarter and Tesla often delivering more vehicles over the last few weeks of a quarter, the automaker is expected to beat its latest record in China.
China is a critical market for Tesla and electric vehicles in general. Tesla’s performance in China often makes the difference in whether it has a good quarter.
The increase in sales comes after Tesla slashed prices globally. The price cuts came to China first in early January.
Everything points to Tesla having a great quarter for deliveries in Q1 2023.
However, the attention is going to be on Tesla’s gross margin. The price cuts successfully boost sales, but they will negatively affect its gross margin.
The good news for Tesla is that it had industry-leading gross margins. They are large enough to eat the price cuts, but the investors are hoping for Tesla to still be in the double digits gross margin.
In Q4 2022, Tesla had a record of 405,000 deliveries globally. Investors are hoping for Tesla to beat that – likely only marginally.
The company has the capacity to produce about 2 million vehicles in 2023, and it wants to 10 times that by 2030. Not many people outside of Tesla fans believe that it is possible, but there weren’t many people who believed Tesla would get to a capacity of 1 million people. But it did – and more.
The world saw a record 9.6% growth in renewables in 2022
By the end of 2022, global renewable generation capacity amounted to 3372 gigawatts (GW), growing the stock of renewable power by 295 GW or 9.6%, according to the International Renewable Energy Agency (IRENA).
Renewables produced an overwhelming 83% of all power capacity added last year.
Renewable Capacity Statistics 2023, released today by IRENA, shows that renewable energy continues to grow at record levels despite global uncertainties, confirming the downward trend of fossil fuels.
Francesco La Camera, director-general of IRENA, said:
This continued record growth shows the resilience of renewable energy amid the lingering energy crisis.
The strong business case of renewables coupled with enabling policies has sustained an upward trend of their share in the global energy mix year on year. But annual additions of renewable power capacity must grow three times the current level by 2030, if we want to stay on a pathway limiting global warming to 1.5C.
While many countries increased their renewable capacity in 2022, the significant growth of renewables is concentrated in Asia, the US, and Europe. IRENA reports that almost half of all new capacity in 2022 was added in Asia, resulting in a total of 1.63 terawatts (TW) of renewable capacity by 2022. China was the largest contributor, adding 141 GW to Asia’s new capacity.
Renewables in Europe and North America grew by 57.3 GW and 29.1 GW, respectively. Africa saw an increase of 2.7 GW, slightly above 2021. Oceania continued its double-digit growth with an expansion of 5.2 GW, and South America had a capacity expansion of 18.2 GW. The Middle East recorded its highest increase in renewables on record, with 3.2 GW of new capacity added in 2022, an increase of 12.8%.
Although hydropower accounted for the largest share of the global total renewable generation capacity with 1250 GW, solar and wind continued to dominate new generating capacity. Together, both technologies contributed 90% to the share of all new renewable capacity in 2022. Solar led with a 22% (191 GW) increase, followed by wind, which increased its generating capacity by 9% (75 GW).
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Watch Hyundai’s new AI-based robot charge an IONIQ 6 [Video]
Hyundai revealed Tuesday it has developed an EV charging robot that automatically plugs in using a 3D camera-based AI algorithm. Watch how it works on the IONIQ 6 in Hyundai’s latest video below.
The Hyundai Motor Group, including the Kia and Genesis brands, became the third largest automaker globally, surpassing GM, Nissan, and Stellantis in annual volume in 2022. But it didn’t happen by chance.
Hyundai took a risk, unveiling a progressive new approach with its first dedicated electric vehicle, the boldly designed IONIQ 5.
The IONIQ 5’s success has surprised even its top leaders, attracting premium buyers from other brands. As Michael Cole, president and CEO at Hyundai Europe, explains, “after the success of the IONIQ 5,” the company is more willing to take bolder risks.
Hyundai carried the unique design to the IONIQ 6 electric sedan released last July as one of the most efficient and aerodynamic EVs to hit the market.
Together, the IONIQ 5 and IONIQ 6 recorded over 100,000 sales globally last year as Hyundai accelerated its EV rollout.
Hyundai plans to change the game with another bold idea, an EV charging robot.
Hyundai’s EV charging robot charges an IONIQ 6
The Hyundai Motor Group revealed its latest innovation Tuesday, the automatic charging robot (ACR) for electric vehicles.
The ACR is a one-arm robot that uses a 3D camera-based AI algorithm to plug into EVs and charge them automatically. Check out how it works with an IONIQ 6 in the video below.
The video starts with the IONIQ 6 autonomously parking itself via Remote Smart Parking Assist (RSPA) with the wireless charging cover control opening by itself.
The robot then gets to work with charging port recognition to detect where to plug in the vehicle. Once the charging is complete, the robot removes the charger, returning to its upright position while closing the car’s charging port.
The company’s robotics lab considered many variables for the ACR, including the car’s parking spot, the weather, potential obstacles, and the weight of the charging cable for an ultimate experience.
As a result, the robot can operate in all environments with a waterproof and dustproof grade of IP65 and can even detect possible accidents.
You will be able to see Hyundai’s newly released ACR at the 2023 Seoul Mobility Show from March 31 to April 9.
Hyundai isn’t the only one developing a robot to charge your electric vehicle automatically. Ford tested a robotic EV charger to help the disabled, elderly, and others who need assistance plugging in.
Ram also unveiled an autonomous robot charger for its first electric pickup, the Ram 1500 REV. Tesla tossed around the idea of a “snake charger” several years ago.
The point of the matter is robot chargers likely won’t serve a purpose on a large scale but for those that need it (disabled, elderly, fleets), it could potentially be helpful.
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