German legacy automaker BMW announced that its electrification push has already crossed the “tipping point” as its electric vehicle sales continue to grow, Bloomberg reports, citing the company’s chief financial officer.
“The tipping point for combustion engines was last year.”
BMW’s CFO Walter Mertl told the media on Monday
BMW’s electrification progress
BMW increased its electric vehicle sales by nearly twofold (+74%) to more than 375,000 units in 2023.
In the fourth quarter alone, BMW’s EV sales surged 47.7% year-over-year to a total of 129,316 units. These remarkable figures enabled the German automaker’s EVs to account for 15% of its overall volume in 2023, aligning with BMW’s self-set target.
Notably, BMW iX1 and BMW i4 were the top-selling models of the brand. The BMW i5’s launch in 2023 also aided the brand in offering a battery-electric vehicle variant in each of its key segments.
Impressively, the all-electric BMW i4 M50 has remained the most popular BMW M car for two consecutive years.
This significant EV sales growth prompted the company to forecast “more than half a million fully-electric vehicles” sales this year.
More growth prospect
BMW announced plans to allocate $711 million (€650 million) to retool its main factory in Munich to produce only all-electric vehicles by the end of 2027. It will become the brand’s first factory to undergo retooling for BEV production.
According to CFO Walter Mertl, the order books of the German automaker are fully stocked with orders. Therefore, BMW may likely achieve its electric vehicle sales target this year.
“Future growth will primarily come from battery electric vehicles. The current sales plateau of combustion cars will continue and then fall off slightly.”
BMW’s CFO Walter Mertl
Targets and strategies
BMW aims to have its electric vehicle models account for a third of its overall vehicle sales by 2026.
In an effort to achieve this target, the company plans to roll out six Neue Klass EVs within 2 years. It promises to deliver “30% more range, 30% faster charging, and a 25% over improvement in efficiency.”
BMW previously offered a glimpse at the upcoming e-SUV model in a video presentation featuring an aerodynamic design and signature BMW elements. It will reportedly follow the release of the Vision Neue Klasse’s production version introduced at IAA. These next-gen models are expected to debut in 2025.
