While BMW may not yet rival Tesla in electric vehicle (EV) sales, the German automaker is actively boosting its efforts in the EV space, showcasing progress and potential for growth.
BMW recently reported to investors that EVs constituted 12.6% of its total deliveries in the first half of 2023, a notable increase from the 10% figure recorded for the entirety of 2022. The automaker has set its sights on achieving a 15% share of battery-electric sales by the conclusion of 2023.
The surge in demand for battery-powered vehicles has prompted BMW to revise its investment strategy. The company’s Chief Financial Officer revealed that BMW is now channeling more resources into the global expansion of e-mobility than initially planned. This shift is clearly reflected in the firm’s second-quarter 2023 earnings report, which shows a nearly 19% increase in research and development spending compared to the same period in 2022. This surge in investment has driven the research and development spending to reach approximately $2 billion in the second quarter of 2023.
Despite these significant strides in the EV arena, BMW remains reticent to specify a timeline for the cessation of gas-powered vehicle sales. CEO Oliver Zipse addressed this during the company’s earnings call, emphasizing that there is currently “no indication that the world is renouncing combustion engine vehicles.”
Interestingly, this stance diverges from the approaches adopted by other automakers like Mercedes-Benz, Ford, and General Motors. These companies have outlined plans to phase out sales of combustion-engine vehicles by the year 2040. This divergence highlights the varied perspectives within the automotive industry concerning the transition to electric mobility.
