AFTER considering the business update and Q1 results announced by BMW Group, David Leggett – an automotive analyst at GlobalData – provides this review of BMW’s performance.
“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.
Leggett (pictured right) goes on to say that OEMs remain fixed on e-mobility. And that even if policy makers deem financial support or similar measures are required for the auto makers, these are unlikely to alter the market shift to zero emission vehicles.
“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.”
Further reading on BMW’s electrification programme
You might find the following a useful follow up: BMW’s electrified future for fleets.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.