BMW is doubling down on its investments in combustion and hybrid technology as it braces for fluctuations in the global shift to electric vehicles. Board member Jochen Goller emphasized that the transition to EVs will not be linear, highlighting the company’s strategy to maintain a broad range of powertrain options.
“We believe the move towards electrification will be a rollercoaster ride,” Goller stated at BMW’s Munich headquarters. “That’s why we continue investing in combustion engines, modern plug-in hybrids, and electric vehicles.”
Unlike some rivals that have focused exclusively on EVs, BMW has maintained a diversified approach. The company’s fully electric car sales grew by 13.5% last year, reaching 426,594 units, with EVs and hybrids together comprising 24% of total sales.
BMW’s cautious approach has positioned it favorably against competitors like Volkswagen and Mercedes-Benz, which have struggled with declining EV demand. Analysts believe BMW is well-placed to meet EU emission targets without resorting to aggressive EV discounting. Additionally, its strong U.S. manufacturing presence shields it from potential tariff increases.
Despite its strengths, BMW faces hurdles in China, where its sales dropped over 13% last year, a sharper decline than rivals such as Mercedes-Benz and Audi. Analysts cite intensifying price competition in the Chinese market as a major concern.
Looking ahead, BMW will introduce its Neue Klasse platform, designed to enhance EV efficiency with longer range, faster charging, and improved software capabilities. Analysts suggest this move will solidify BMW’s edge in multi-energy powertrains and software-defined vehicles.
While acknowledging China’s changing market dynamics, Goller remains confident. “Chinese brands are advancing rapidly, but we are not afraid,” he said. BMW continues to adapt its strategy to remain competitive in an evolving automotive landscape.
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