BMW sees its future in more “affordable” electric cars

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“This will be the heart of our business in the future”. It is in these terms that the CEO of BMW speaks of the brand’s strategy in the short and medium terms.

Known for its premium positioning, BMW could therefore review its strategy by focusing on more affordable electric vehicles. During an event organized by Bosch, Oliver Zipse, CEO of the company explained:

We are not leaving the entry-level market. Even if you consider yourself a premium builder, it is a mistake to leave the entry-level market, which will be the core of our business in the future.

Affordable BMW electric cars?

The comments made by the CEO of BMW are surprising. Indeed, the strategy of the brand seems to be moving in recent years towards more and more luxurious models.

Its first 7-Series electric car, the BMW i7, launched in late 2022 at over $119,000. The Rolls Royce Specter (the brand is part of the BMW group) is offered from 400,000 dollars. We can’t really say that BMW is betting on affordable models.

Because for the time being, the brand has not declined any of its most “general public” models in an electric version. Nevertheless, it seems to be part of his plans. The company has invested $1.7 billion in electric and promises to launch at least one electric model for each range. BMW is even announcing six 100% electric vehicles in the next ten years.

A promise difficult to keep?

Would the CEO of BMW get carried away? How can you promise more affordable models when the majority of the industry is increasing its prices? The current economic and geopolitical context has a significant impact on the entire automotive market, in unexpected proportions.

Tesla, whose credo was to democratize the electric car, has repeatedly increased the price of its Model 3. And the company has explained that it is postponing its project for a car under $30,000 until the effects of the inflation will be felt.

In addition, BWM will also have to convince its shareholders. Last week, the group announced the results of its 3rd quarter of 2022. The company explained that it thought to double the sales of electric cars this year, if however the costs of materials and interest rates did not have an impact. impact on orders.

How to change strategy when the one in place seems to be working? Doesn’t a repositioning towards more affordable vehicles, while the sale of luxury vehicles is profitable, risk being rejected by investors?

The words of the CEO of BMW are therefore quite commendable and even have something to delight those who would like to go electric in the years to come. Let’s hope the company keeps its promises and doesn’t get caught up in the harsh reality of the market.

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