BMW declares ‘tipping point’ in shift from gas-powered cars to EVs as sales heat up

BMW has crossed the “tipping point” as the automaker shifts from gas-powered vehicles to EVs. According to BMW’s CFO, from here on out, most of its growth will come from electric vehicles.

After nearly doubling (+74%) EV sales last year with over 375,000 electric models sold, BMW doesn’t see the growth slowing.

In the fourth quarter, BMW saw demand pick up with 129,316 EVs handed over, up 47.7% year-over-year (YOY). With that, BMW’s EVs accounted for 15% of total sales last year, hitting its target.

BMW brand EVs were in high demand, with over 330,500 models delivered last year. The BMW iX1 and BMW i4 were the top sales drivers. Meanwhile, with the launch of the i5 last year, BMW now has an all-electric option in each of its main segments.

The fully electric BMW i4 M50 remained the top-selling BMW M car for the second straight year.

Jochen Goller, BMW board member, said the brand expects “to sell more than half a million fully-electric vehicles in 2024.”

The automaker announced a $711 million (€650 million) investment earlier this month to prepare its main factory in Munich to go all-electric by the end of 2027. It will be BMW’s first existing plant in its production network to be converted for all-electric models.

BMW says tipping point toward EVs already happened

“The tipping point for combustion engines was last year,” BMW’s CFO Walter Mertl explained to the media Monday.

According to the financial leader, BMW’s order books are well-filled as it aims to sell 500,000 EVs this year.

“Future growth will primarily come from battery electric vehicles,” Mertl said. Despite several automakers, including Ford and GM, scaling back EV investments, Mertl believes “The current sales plateau of combustion cars will continue and then fall off slightly.”

BMW aims for a third of its vehicle sales to be electric by 2026. The automaker revealed its next-gen (Neue Klass) EVs last September, giving us a glimpse into the brand’s future tech.

BMW’s Neue Klass vehicles will feature “30% more range, 30% faster charging, and a 25% over improvement in efficiency.” The vehicles are set to debut in 2025.

CEO Oliver Zipse said BMW plans to launch six Neue Klass EVs within two years: “From SUV to Sedan, there is something for every customer.”

BMW teased a first look at the electric SUV during a video presentation. Despite its camouflage you can see the EV’s aerodynamic design and signature BMW elements.

The next-gen electric SUV will follow a production version of the Vision Neue Klasse revealed at IAA. BMW plans to begin rolling out its next-gen EVs in 2025.

Source: Bloomberg