Following the business update and Q1 results announced by BMW Group;
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Electrification remains a priority for BMW as part of meeting tighter EU fleet average CO2 emissions this year and next. BMW says it is set to achieve its stipulated CO2 fleet average target for new vehicles registered in Europe this year – around 20% below last year’s level. Some two thirds of the targeted improvement this year for BMW is planned to be met by increasing the number of electrified vehicles in its sales mix.
“The long-term position for the auto industry is fundamentally unchanged – e-mobility is coming down the tracks. If regulators and policymakers do decide the auto industry needs special support measures later this year, they will likely be mindful of any environmental impacts and anxious not to harm the market shift to zero emission vehicles that is underway.
“Investments in electrified vehicles and technologies are about the long-term and we expect to see a major shift towards electric propulsion over the next decade.
“GlobalData forecasts that the annual production of electric vehicles in Europe will have more than tripled to 1.6 million units by 2023.
“While the auto industry is rightly focused on the immediate impact of the COVID-19 crisis on overall markets and volumes this year, BMW is giving us a timely reminder of the need to keep investing and increase the share of electrified vehicles in company sales and output.”