BMW Unveils New Electric Vehicle to Compete with Tesla and BYD
BMW AG has unveiled its initial model of forthcoming electric vehicles, marking a significant milestone in its efforts to compete with Tesla Inc. and safeguard its sales in China, its largest market.
The Vision Neue Klasse concept car, on display at next week’s IAA show in Munich, showcases BMW’s dedicated electric cars due to be produced in 2025 – at the same time as Mercedes-Benz Group AG unveils its new battery-powered models. Software issues have delayed similar architectures from Volkswagen AG and sidelined key Porsche and Audi vehicles.
With the stylish coupe, BMW abandons the decades-old tradition of mainly promoting the performance of its “extreme driving machines”. Instead, it features a digital display projected across the entire width of the windshield, as well as software that can handle voice commands and hand gestures. The change will excite Chinese customers, who are increasingly choosing domestic brands such as BYD Co. and Nio Inc., which have been better at building electric cars with equipment tailored to local tastes.
Neue Klasse will “determine our direction for the next decades,” CEO Oliver Zipse said.
For a long time, BMW, Mercedes and Audi dominated sales of high-end combustion engine cars in China, but the country’s rapid transition to electric vehicles has caught up.
BYD this year overtook VW as China’s best-selling carmaker, and Mercedes cut the prices of its flagship electric sedan there late last year after disappointing sales. Electric cars and plug-in hybrids are expected to make up 90 percent of the world’s largest car market by the end of this decade, prompting Western premium brands to accelerate their offerings. The price war started by Tesla in China has also increased the pressure.
BMW is growing in China, especially in electric cars, and the price war will not affect the automaker due to its positioning in the premium segment, Zipse told reporters on Saturday in Munich. He added that the Neue Klasse is even more profitable than the company’s current range of battery-powered cars.
BMW’s top-of-the-line Neue Klasse models have a range of up to 800 kilometers (497 miles) and charge from 10% to 80% in less than half an hour, which probably doesn’t make them best in class. Last year, Mercedes’ electric prototype drove more than 1,000 kilometers on a single charge.
However, BMW is still in second place in China in terms of the technical characteristics of its cars, according to a recent consumer survey by consulting company AlixPartners. BMW came in behind Geely’s Zeekr, but ahead of Xpeng, Tesla and VW.
Despite the new focus on digital capabilities, BMW isn’t completely throwing its brand traditions overboard. While most electric cars today offer quick acceleration, the Neue Klasse is more fun to drive at higher speeds than many of its competitors, according to Zipse.
“We still believe we can change the dynamics of the powertrain,” the CEO said.
