BMW, the German luxury brand, recently announced its full-year 2023 results, showcasing a 6.4% increase in global deliveries to 2.554 million units. This success was reflected in the company’s global revenue, which climbed 9% to 155.5 billion euros, with the automotive EBIT margin reaching 9.8%. Moreover, BMW saw a significant 74.2% surge in electric vehicle (EV) sales to 375,000 units globally.
BMW’s impressive performance in the EV market can be attributed to its unique two-pronged EV strategy. Unlike many other automakers, BMW releases vehicles, such as the new 7-series, in both traditional gas-powered and EV forms, while maintaining the design and aesthetic consistency between the two. Frank Weber, BMW’s Global Chief Technology Officer and board member, emphasized the importance of offering customers the choice between different powertrain options within the same vehicle model.
BMW’s Successful EV Strategy
The company’s innovative approach to providing customers with diverse powertrain options has contributed to BMW’s early success in the EV market. In the first two months of 2024, BMW reported a significant double-digit percentage increase in BEV sales compared to the previous year. The growth was particularly strong in the US, where BEV sales nearly doubled by the end of February compared to the previous year. Additionally, European and Chinese markets also experienced substantial double-digit growth in BEV sales.
Embracing Plug-In Hybrids
Aside from its success in the EV market, BMW has also excelled in plug-in hybrid sales, becoming a leader in the premium segment with approximately 1.1 million units sold globally. The BMW X5 xDrive50e Plug-In Hybrid SUV was recognized as a top choice by Consumer Reports in the US, further solidifying BMW’s position in the plug-in hybrid market.
Vision of BMW’s Electric SUV Future
BMW unveiled the BMW Vision Neue Klasse X, providing a glimpse of the electric future of its SUV lineup. The concept, based on BMW’s bespoke EV platform, Neue Klasse, is set to debut in the second half of the following year. This new class of EVs will operate on a separate platform but will still share technology products like infotainment and electronics with gas-powered vehicles to reduce costs and maintain consistency.
Outlook on the EV Market
Despite a slowdown in EV sales in the overall market, BMW remains optimistic about the future of EV technology. Weber believes that the transition to EVs is inevitable, though it may take time to become mainstream. He emphasized the natural growth path of EV technology year over year, which he views as a healthy progression towards widespread adoption.
Overall, BMW’s strategic approach to offering a variety of powertrain options within its vehicle lineup has positioned the company for success in the evolving automotive landscape, particularly in the growing EV market.