BMW: EV Margins Will Match Those of Piston Cars by 2025
BMW AG tells the Financial Times that its profit margins on the sale of electric vehicles should equal those of the company’s current piston-powered models by 2025.
Chief Financial Officer Nicolas Peter says parity could come sooner, depending upon public acceptance of EVs. Earlier this week BMW announced it will introduce 25 hybrid or all-electric vehicles by 2023, two years sooner than originally planned.
The company predicts overall demand for EVs will grow 30% per year over the next five years. Several carmakers have estimated that EV prices will drop to equal those of comparable conventional vehicles by about 2025.
The engineers at Munro & Associates have taken a perfectly sound BMW i3 and taken it apart. Completely apart. And they are impressed with what they’ve discovered about how the EV is engineered.
A young(ish) guy that I’ve known for a number of years, a man who spent the better part of his career writing for auto buff books and who is a car racer on the side, mentioned to me that his wife has a used Lexus ES Hybrid.
Lithium-ion batteries have become the technology of choice for EVs, and falling costs and rising energy levels could keep them on top for nearly two decades.