BMW asserted that the upcoming iX3 electric model could generate similar profits as its gasoline counterpart, the X3.
BMW has announced its strategic plans for the future, revealing a balanced approach to both electric and traditional vehicles. The German automaker has confirmed the launch of an eighth-generation model, codenamed "G50," shortly, and the entry-level 40 sDrive version of the iX3, priced under $55,000, will be available.
CEO Oliver Zipse has expressed his belief that the EU's 2035 sales ban on new vehicles with conventional powertrains is a "big mistake." Despite this, BMW aims for EVs to account for at least half of its annual sales by 2030, but has not declared an end date for combustion engines. The company has invested in its inline-six and V8 engines to make them compliant with Euro 7 standards, and its three- and four-cylinder powertrains are set to remain for the long haul.
The new BMW iX3 is projected to generate approximately the same profit as the X3, and the electric SUV could achieve margin parity with its gasoline-powered counterpart as early as next year. BMW's commitment to electric vehicles is further evident in its plans to develop over 40 derivatives on the Neue Klasse platform in the coming years. This includes a new generation of the 3 Series and possibly an electric successor to the M8, focusing primarily on electric vehicles. The Neue Klasse will be a purely electric architecture featuring advanced battery technology and high charging performance.
The iX3 and upcoming Neue Klasse models are believed to be crucial for reinvigorating sales in China, BMW's largest market. Chief Financial Officer Walter Mertl stated that the "NA5" has a real chance of being as profitable as the "G45." Mertl also expressed confidence that the increased availability of the Neue Klasse models will lead to growth in China.
The iX3 is shaping up to be a popular model due to its strong spec sheet, fresh design, and next-gen technology. An xDrive equivalent of the entry-level iX3 is also on the way, and BMW is preparing an i3 Touring, designated as "NA1." It's worth noting that the fully electric i3 "NA0" will not replace the traditional 3 Series sedan.
BMW is not planning to abandon combustion engines, and the gas-powered wagon may not survive into the "G51" generation. However, the company is not concerned about its future model range, with Mertl expressing confidence in the lineup. The first full year of global availability for the iX3 will be in 2027, making it a significant part of BMW's electric future.
In conclusion, BMW's strategic plans reveal a commitment to both electric and traditional vehicles, with a focus on electric vehicles in the coming years. The iX3 and upcoming Neue Klasse models are expected to be key players in BMW's continued success, particularly in its largest market, China.
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