BMW cuts a lonely figure in the list of top-selling electric car models in 2015. Tesla has indeed runway with this market, and has more than 400,000 reservations around the world to validate their leadership in this segment. No other electric car maker in the world can come close to the pent-up demand that Tesla has created for itself; nor is there another EV car maker in the world that can match Tesla’s range.
Add to that the fact that Tesla started at the top of car food chain making luxury cars – a niche market held under tight control by the German trio of Audi, Mercedes and BMW around the world – and that cements their Numero Uno position moving down the food chain as well.
All these companies know the threat Tesla poses to their future; but of the three, BMW seems to be the only one that is rising up to the challenge. Mercedes does have a new fuel-cell hybrid on the way, but that’s nowhere near the bottom price band for luxury vehicles.
BMW spends billions of dollars each year towards research and development. The German carmaker recently upgraded its $42,000 fully electric car i3’s battery pack, extending its range to 183 miles.
Even at this range, BMW’s i3 fares far less compared to Tesla’s new Model 3, which critics say looks much better, has a better range and costs less than BMW’s i3. In a way, BMW may have priced itself out of competition with the Tesla Model S, but there are two things to remember here: first, it’s a BMW, so there’s a tremendous amount of brand value behind the i3 project; second, BMW isn’t trying to compete with Tesla – they’re just trying to make a name for themselves in the EV space so they’re well positioned for the future of automobiles.
Even Volkswagen recently declared that they would roll out no less than 30 electric models by 2025, so we know that EV is definitely the way the industry is headed. And it’s all because a man named Elon Musk had the guts to stand up to a century-old industry and forced it to change.
According to AutoExpress, BMW is also working on an a hybrid 3 series eDrive carrying a 90 kWh battery pack and a range capability of 300 miles that may hit the roads around 2020. With Tesla’s Model 3 to be priced around the $35,000 level, it brings BMW’s iconic 3 series directly in its line of sight.
Tesla’s Model S had taken sales from badges above its price point as well as below it. With Tesla planning for a 2018 launch, BMW is gearing up to counter them with an updated hybrid version of their 3 series, which will also be available in diesel and petrol variants the same year as the Model 3.
BMW is still many years away from going fully electric as a company, but they seem to be revving up for the challenge ahead – more ably so than either Audi or Mercedes. It’s going to be a great fight to watch.
