BMW Group lauds innovation in China and ramps up electric offensive
The top executive of BMW says China’s vibrant innovations in the world’s largest vehicle market have positioned the nation to lead the development of smart electric vehicles.
“The heart of BMW beats here in China. It’s great to be back,” said Oliver Zipse, chairman of the German automaker’s management board. He was speaking at the April 18-27 Shanghai auto show, which marked his third visit to China in six months.
Zipse, who was a member of the German Chancellor Olaf Scholz’s delegation that visited last November, said he enjoys coming to China which is also BMW’s largest market, because it is open to new things.
“This open attitude has brought China to the forefront of the industrial changes. All carmakers, suppliers and other partners along the industrial chain are here, which is actively contributing to the industry’s long-term development,” he said.
BMW is showcasing its largestever lineup of electrified models at the Shanghai auto show, including those from its MINI and Rolls-Royce brands. The all-electric BMW i7 M70 xDrive, which is the company’s fastest and most powerful electric model, and the fully electric China-made iX1 SAV are two of the most popular.
Zipse said BMW is deepening its localization strategy in both manufacturing and research to meet the requirements of tech-savvy Chinese consumers, adding: “There are already a lot of features in our cars that are inspired by China. This includes, for example, the rear entertainment system in the BMW i7.”
He said the i Vision Dee, a concept vehicle that made its Asian premiere at the Shanghai auto show, is another model that includes significant Chinese input.
BMW has more than 3,200 research and development personnel and information technology engineers in China, constituting the company’s largest R&D network outside of Germany. Zipse said the innovative work of BMW’s engineers in China can help the company better deal with challenges it might face in other parts of the world.
China is also home to BMW’s largest manufacturing facilities, with a combined annual capacity of 830,000 units. In the first quarter of 2023, the Munich-based car group sold almost 20,000 electric vehicles in China, its largest market, up 224 percent year-on-year.
The upward spiral is set to continue, with EV sales for this year projected to at least double the total from 2022. The company will have 11 electric products available in the market this year, including Chinamade models.
Zipse said the company’s vast experience in the e-mobility sector, combined with the exponential growth of the Chinese market, will continue to propel product development. The company’s first electric model, the MINI E, rolled out in 2008, and the BMW i3 followed in 2013, with a carbon fiber car body.
“So far we have put more than half a million all-electric BMW and MINI vehicles on the roads worldwide,” he said, adding that all-electric vehicles are expected to account for 15 percent of the company’s global sales this year, with that figure climbing to 50 percent by 2030.
Zipse said BMW has clearly defined the next milestones for its electric vehicle ramp-up. The i7 and the iX1 are on the road, and the longwheelbase version of its electric BMW i5 will be produced in China in the near future. In 2025, the company will shift into an even higher gear, launching its all-new Neue Klasse. Within 24 months of the start of production, at least six new models will hit the market.
While the company’s expertise in manufacturing and original ideas about future mobility have made BMW unique in the market, Zipse said, he hopes people will look beyond its products.
“We are forging ahead with electrification, digitalization and circular economy, which is often underestimated,” he said, noting that gasoline vehicles and electric ones are not in a zero-sum game.
“Instead, they complement each other, and BMW can do a great job in both segments. Climate change and green, low-carbon development will push us to figure out the most fitting technology. That means we cannot rely too much on just one technical route, and we at BMW have very farsighted long-term plans,” he said.