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BMW has pledged to continue investing in combustion engines and hybrid technology as it warned Donald Trump to “ride a roller coaster” in electric vehicles after returning to president.
Board member Joshen Goller said the group will be selling US gasoline and plug-in hybrids, even as demand for EVs slows in the coming years due to policy changes under the new administration. He said he remains optimistic.
“I think it’s naive to believe that the movement towards electrification is a one-way road. Goller, who is responsible for customers, brands and sales, told the Financial Times at BMW’s headquarters in Munich.
“This is why we invest in combustion engines,” he said. “We’re investing in the latest plug-in hybrids, and we’ll continue to deploy electric vehicles.”
BMW, also owns Rolls-Royce and Mini Brands, has long been cautious at the pace of the global shift to EVs, developing a wide range of products long before EV sales began to slow down.
Last year, the company issued a profit warning after being hit by a slide sale for sale in China, forcing it to recall the 1.5mn vehicle as the brake system developed by Continental may have broken down. Ta.
But that broad strategy was when German rivals Volkswagen and Mercedes-Benz struggled to adapt to slowing demand for EVs despite their previous ambitions to put all the electricity out of its mind. It was almost rewarded.
International peers, including Toyota and Stellantis, also take a multi-energy approach, but BMW is restrained for the powerful offering of EVs with the same design and appearance as their gasoline and hybrid counterparts.
Sales for the fully electric vehicle group rose 13.5% last year to 426,594 vehicles, accounting for 17% of total sales. Including hybrids, the electrification rate was 24%.
“We expected people wouldn’t want to be discriminated against because of the powertrain,” Goller said. “We’ve been following the paths others are following now.”
Analysts say BMW is better than its rivals to meet the EU’s tougher emissions targets without selling EVs at deep discounts. Also, 65% of cars sold in the US are locally built and are also a net exporter from the US, so they are not exposed to Trump’s tariff war.
“From an operational perspective, I think BMWs outside China are positioned very well,” said UBS analyst Patrick Hammel. “They are where they need to need from a mix EV share perspective.”
Jefferies analyst Philippe Houchois explains BMW. BMW has been attracting criticism from investors in the past for betting on powertrain technology.
This year, the group will launch the Neue Klasse platform for next-generation EVs with longer ranges, faster charging and upgraded software features. Houchois said it would “consolidate software-defined vehicles, multi-energy power trains and battery procurement leads.”
However, China has proven challenging for Munich-based automakers. BMW and mini sales in the world’s largest automotive market fell by more than 13% last year to 714,530 cars. This is a more serious slump than rivals such as Mercedes-Benz and Audi.
Citigroup analysts warn that BMW remains vulnerable to China. There, increasing price pressures in overcrowded markets are forced to discount prices on automakers. Citi analysts say sales in countries where BMW is still under a third of a car is “still our important concern.”
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Goller acknowledged that it is unlikely that China will return to explosive economic growth.
“But we still see a growing market. So our ambition is clearly that we want to participate in the growing market,” he said.
Goller added that it shouldn’t come as a “shock” that Chinese brands are rapidly gaining domestic market share from foreign automakers.
“Cars are really good from a technology standpoint,” he said. “But we are not afraid.”
