BMW steps up electric car target to 700,000 by 2025

BMW steps up electric car target to 700,000 by 2025

BMW plans to increase sales of electric and plug-in hybrids by 30% every year until 2025 to help meet incoming stringent emission regulations in the EU, prompting the carmaker to accelerate the rollout of battery models.

The German manufacturer moved up a goal for a lineup of 25 electric and plug-in hybrid models by two years to 2023, it said, following plans by other carmakers like Volkswagen to keep up with tightening regulation. This puts BMW on a trajectory to sell roughly 700,000 electrified vehicles by 2025. The quicker ramp up on electric cars will put the world’s second-biggest luxury carmaker on a trajectory to meet EU regulation by 2021 on CO2 and avoid fines, chief financial officer Nicolas Peter said.

“We will achieve them from my perspective, no doubt,’’ Mr Peter said.

Carmakers in Europe are exposed to potentially billions in fines on tough regulations for carbon dioxide fleet emissions that’ll be phased from next year. Rather than falling, automakers’ CO2 emissions have been going up for the past two years due to demand for larger sport utility vehicles and consumers buying fewer diesel cars.

Diesels emit about a fifth less CO2 than equivalent petrol vehicles. From 2020, much of the EU car fleet will be capped at 95 grams of CO2 per vehicle per kilometre driven. Currently, BMW sits at 128 grams, chief executive Harald Krueger said.

The regulation is adding to a bevy of headwinds for the industry as it transitions into electric cars, while also battling trade tensions and a slowing global economy. To tackle the challenges, BMW has put in place a €12bn cost-cutting programme.

BMW currently offers one battery-powered vehicle, the i3 city car, which it started selling in 2013. It’s adding an electric Mini later this year. The company sold 142,000 electric and plug-in vehicles last year, a rise of 38% to make up about 6% of total deliveries. Demand this year has slowed, rising about 2% through May.

Other carmakers have also increased targets for electric vehicles in recent months. Daimler in May said more than half of its Mercedes-Benz brand cars would be plug-in hybrid or electric variants by 2030, while VW plans to sell more than one million purely electric cars by 2025. BMW also announced it would only buy electricity from renewable energy sources from 2020 onward for all its locations. Separately, the carmaker said it has set aside between €100m and €500m in order to deal with Brexit.

Bloomberg

More on this topic

Electric and hybrid cars increase by 68.5% in first half of yearElectric and hybrid cars increase by 68.5% in first half of year

New electric cars must be fitted with noise devices to protect pedestriansNew electric cars must be fitted with noise devices to protect pedestrians

10 things to know if you're thinking of buying an electric car10 things to know if you're thinking of buying an electric car

Charging points key to igniting EV salesCharging points key to igniting EV sales

More in this Section

Google pays tiny cost in wifi scandalGoogle pays tiny cost in wifi scandal

Irish services face being the hidden casualty in Brexit falloutIrish services face being the hidden casualty in Brexit fallout

Oil price focus as UK-Iran tit-for-tat tanker seizure spat gets seriousOil price focus as UK-Iran tit-for-tat tanker seizure spat gets serious

No silver tech bullet for new British leader to swerve BrexitNo silver tech bullet for new British leader to swerve Brexit


Lifestyle

We’ve all had that feeling at some stage as we step off fast amusement park ride, or simply spin around for fun; that feeling of dizziness and disorientation and finding it difficult to stay upright. But why do we feel dizzy when we spin?Appliance Of Science: Why do we feel dizzy when we spin around?

Padraic Killeen reviews Epiphany from the Town Hall Theatre, Galway.Epiphany Review: Not a straightforward adaptation of Joyce’s scenario

More From The Irish Examiner