50 PERCENT MORE EV SALES NEXT YEAR : BMW

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New Pricy Luxury BMW Cars….?

Back in 2015 when it was the BMW’s best year for i3 sales in the U.S. market, the automaker was only able to sell slightly more than 11,000 models of the small car in this market. But now over the upcoming year, BMW is looking to increase sales of both electric and hybrid vehicles by a huge 50%, Bloomberg reports the same. That would also mean selling 150,000 electrified vehicles by 2018. By doing this BMW claims to attain a position itself ahead of its main competition Mercedes & Jaguar.

“We’ll definitely boost sales by a mid-double digit amount, this is to stay ahead of the competition that’s starting to do its own rollout.” – Klaus Froehlich, BMW’s Head Of Development.

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BMW says the problem is, batteries are expensive and by 2025 BMW plans to offer 12 fully electric vehicles. However, the full-size X7 SUV and 8 Series coupé will both be seeing dealership very soon each with starting prices north of $100,000. Profits on high end luxury cars like the X7 are much higher than the base offering inexpensive vehicles like the X1 and 2 Series. The way BMW sees it is that the more cars they can sell with six figure price tags, the sooner will they be able to pay the EVs.

“Our goal for the luxury segment in the next few years is taking more market share, in 2018, we’re significantly enlarging our offering in this lucrative growth segment.’’ – BMW CEO Harald Krueger.

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If BMW’s newest offerings aren’t able to capture market share from Mercedes, the German automaker may get in trouble. They recently said they plan to spend about $8.3 Billion which equals to €7 Billion on research and development the year, a figure that Bloomberg claims they’ve spent on R&D in 2011 and 2012 combined.

“This can’t be just about showcase cars, we have to boost profitability and keep prices on an acceptable level by delving very, very deeply into our cost structure.’’ – Froehlich.

Source : Bloomberg

Also Read : FORD PLANNING AGGRESSIVE GROWTH IN CHINA

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