On March 17 this year, German luxury carmaker, BMW, revealed it was planning to make fifty percent of its total car sales electric in the next nine years. This goal is a lesser target than the targets set by its competitors such as Volkswagen and Volvo. The European Union has set specific targets to be met by automakers to curb climate change.
Besides, BMW noted that by 2023, about ninety percent of its vehicle lines would have all-electric models ready by 2023. The MINI brand, assembled at the United Kingdom factory by the same company, will go fully green by early 2030. “We have started the new year with strong momentum and are aiming to return to pre-crisis levels as swiftly as possible-and go even further,” said Oliver Zipse, BMW CEO.
The automaker also revealed the release date for the BMW i4 electric sedan model has been brought forward and would occur three months before the initial release date. The iX battery-powered sports utility vehicle (SUV) will hit the global market before this year ends.
2021 will be a good year for BMW, although the pandemic imposed an unstable economy being experienced globally. According to Zipse, the car manufacturer targets to sell about two million electric cars by 2025. This year, the company targets to raise its annual profits from 2.7% to 6-8%.
These targets are pretty conservative compared with targets set by fellow European automakers. Recently, Volkswagen revealed it targets to raise its electric car sales to seventy percent by 2030. Volvo has vowed to ditch manufacturing internal combustion engine (ICE) cars by 2030. BMW leadership might raise the target depending on customers’ procurement. If the sales exceed the company’s expectations, Zipse said they would accelerate the electric car sales.
According to Matthias Schmidt, an automotive analyst based in Berlin, the reason for lesser targets by BMW is a more extensive customer base that will take longer to transition to battery-powered cars. “BMW and Daimler simply aren’t able to match this 2030 end date due to exposure in markets such as Brazil, Russia and India, and South Africa that is likely going to be slower in transforming to electric vehicles (EVs). Also, they are likely happy to push their profitable ICE cars for as long as possible,” said Schmidt.
EV sales in Europe are projected to shoot, primarily since the European Commission targets at least thirty million battery-powered vehicles on European roads by 2030. According to Scotland-based consultancy firm Wood McKenzie, annual EV sales will hit sixty-two million by 2050.https://minernews.io/