BMW’s conservative approach to electric vehicle (EV) adoption—investing in platforms that accommodate internal-combustion, hybrid, and electric powertrains—is paying off as the company navigates the complex transition to electrification.
Inside EVs reports that as the automotive industry grapples with the challenges of electrification, BMW’s decision to invest in flexible platforms is proving wise. Unlike competitors such as Mercedes and Audi, who have focused heavily on dedicated EV platforms, BMW has developed architectures that support multiple powertrains, allowing for more agility in responding to market demand.
This flexibility enables BMW to adjust its product lineup based on consumer preferences. Models like the i4, i5, and i7 share platforms with gas-powered counterparts, allowing the company to maintain a balanced portfolio. In contrast, manufacturers investing solely in EV platforms may struggle to pivot if demand for electric vehicles slows.
Jochen Goller, a BMW board member, recently acknowledged the unpredictable nature of EV adoption: “I think it would be naive to believe that the move towards electrification is a one-way road. It will be a rollercoaster ride.” This diversified approach, which includes modern combustion engines and plug-in hybrids alongside new electric models, has given BMW a competitive edge.
In 2024, BMW sold a record 426,594 EVs globally, comprising approximately 17 percent of total sales. When hybrid and other electrified vehicle sales are included, that figure reaches around 25 percent. This balanced mix has allowed BMW to meet EU emission targets without relying heavily on incentives.
Despite its success, BMW faces challenges in specific markets. In the U.S., potential elimination of EV tax credits and increased tariffs under the new presidential administration create uncertainty. However, BMW’s domestic production of high-margin SUVs in the U.S. helps mitigate these risks. Meanwhile, in China, the company faces stiff competition from local brands offering affordable, high-tech options, leading to a decline in sales for imported vehicles.
BMW’s ability to adapt its offerings based on market conditions highlights the benefits of its strategic, multi-powertrain approach, ensuring resilience amid the evolving automotive landscape.
