BMW has always been a relatively special existence in the BBA camp. Over the past century, its driving pleasure has become one of the most successful labels in the automotive industry. Its high-end, comfortable, stable, and fun-to-control automobile products are constantly changing and have been loved by customers around the world for generations. To use a popular saying in the Internet circle, it has experienced several serious downturns in the automobile industry, has seen big storms, and has overcome cycles.
The originator product "BMW 303", which debuted in 1933, is a very representative car in the history of BMW. It created two traditions that BMW still maintains to this day - it was the first BMW car equipped with an inline six-cylinder engine; in addition, this car was the first to adopt the famous "double kidney" radiator grille shape on the front part of the car.
The BMW 303 is not just a rare pre-war model. Their classic elements once experienced the post-war and Great Depression era, and have continued to flourish to this day.
On March 21, 2024, the BMW Group released its 2023 group financial report, with revenue of 155.498 billion euros. In 2023, the BMW Group delivered 2,554,183 luxury cars globally, a year-on-year increase of 6.4%. Among them, 824,932 BMW and MINI cars were sold in the Chinese market, a year-on-year increase of 4.2%.
In its press release, BMW specifically mentioned the company's progress in electrification. In 2023, BMW and MINI pure electric vehicles will be the main driving force for business growth. The BMW Group will deliver more than 375,000 pure electric vehicles to customers around the world in 2023, a year-on-year increase of 74.2%, achieving the established goal of pure electric vehicle sales accounting for approximately 15% of the group's total sales. Including plug-in hybrid models delivered throughout the year, the BMW Group will sell more than 560,000 new energy vehicles in 2023, a year-on-year increase of 30.5%. In the Chinese market, which is at the forefront of electrification, the BMW Group will deliver approximately 100,000 BMW pure electric vehicles in 2023.
BMW Shanghai R&D Center
However, when introducing the group's performance, BMW Group Chairman and CEO Zipzer also gave appropriate warnings about the risks in the development of electric vehicles.
The caliber is also very similar - the development of various markets around the world is ups and downs, and it is necessary to remain as flexible as possible. This is also the principle that BMW has pursued in its previous development over the years.
To a certain extent, this has to do with the current environment.
The new four modernizations of the automobile industry and the wave of smart electrification are rising one after another. Now its future seems to be changing from firm to vague, and public opinion once reversed.
What can be observed is that Mercedes-Benz recently announced that it would slow down the progress of its ultimate goal of a pure electric future and focus on providing customers with more suitable technologies and products; Apple finally chose to give up after carefully evaluating smart electric vehicles for 10 years. As a German automobile company that has also gone through cycles and has been rooted in the Chinese market for 30 years, the BMW Group can also provide a perspective.
After completing the group's performance report, Zipze arranged a separate media communication meeting for the Chinese market.
Zipzer also views electric vehicles with caution. He believes that the automotive industry is changing rapidly and new technologies are emerging one after another. BMW has always adhered to its strategy and is committed to meeting the diverse needs of global customers, no matter which driving method.
"What we want to convey is that there is no so-called old or new distinction in the industry., pure driving pleasure has always been the core of BMW. "
But he emphasized the need to maintain a more open environment. For example, "Importing Chinese electric vehicles will not cause substantial harm to the European automobile industry, and imposing tariffs on these imported goods is not in the interests of the EU."
BMW Group Chairman and CEO Zipse at the financial report meeting
The following is the shorthand exchange between BMW Group Chairman and CEO Zipuze. The conversation has been edited without modifying the original meaning:
Question: Recently, Mercedes-Benz has postponed its electrification goal, Apple has also abandoned its car project, and BMW is still promoting electrification. Why are you so optimistic and confident about the future of electrification?
Zipzer: all the time,We firmly implement the established strategy, while being highly flexible and adopting a technology openness approach to respond to changes in market demand.We continue to expand our pure electric model lineup, and we will deliver approximately 100,000 BMW pure electric vehicles in the Chinese market in 2023. In 2024, 11 pure electric models will be provided in the Chinese market.
Different markets will have different developments. For example, the German government will suddenly terminate the electric vehicle subsidy plan.We are not dependent on subsidies, we invest heavily in our products because customers will ultimately choose superior quality products regardless of whether there is a subsidy program or not. In 2023, the BMW Group achieved its set goal of pure electric vehicle sales accounting for approximately 15% of the group's total sales. In 2025, we will launch global production of new-generation models, and launch at least six new-generation models within the next 24 months, and will maintain a growth trend until 2030. Time will verify the correctness of our strategy, and market performance will give us an answer.
Question: In the Chinese market, BMW adopts a dual-engine strategy of gasoline and electric power in its core market segments. How does BMW predict the electrification trend in the Chinese market? Especially in the current fierce competition, how will this prediction affect BMW's future product planning in China?
Zipzer: In the Chinese market, the BMW Group will deliver approximately 100,000 BMW pure electric vehicles in 2023. at the same time,We do not believe that internal combustion engines are an outdated technology, and we still provide a wide range of fuel vehicle products for consumers to choose from.BMW adheres to the open technology route.We let consumers make choices and provide the products they need at the right time.This flexible strategy is very necessary, not only for the Chinese market, but also for other markets such as the United States and Europe.
Question: The word "new generation" has a special meaning for BMW. Now that this name is being used again, does it have a new meaning?
Zipzer: BMW's new generation model is more than just a car, it shows a leap in BMW's product direction. The new generation of models will begin global production in 2025, and at least six models will be launched in the following 24 months. We have the ability to integrate a lot of innovative technologies into the car and have a unique BMW style. We demonstrate that experienced companies have the ability to transform personal mobility. Historical inheritance is not a burden, but our advantage.Through the new generation of BMW models, we want to convey that there is no so-called old or new distinction in the industry.Pure driving pleasure has always been at the heart of BMW.
Question: Chinese customers prefer large-sized models. The BMW New Generation X concept car may not be big enough for Chinese customers. Will future new-generation models consider catering to this demand of Chinese customers?
Zipzer:As mentioned just now, the new generation of models will begin global production in 2025, and at least 6 models will be launched in the next 24 months. Please be patient as more details will be shared in due course. The new generation model is not just a car, but a series of models that incorporate the latest technology. It is not only a brand-new architecture, but also a series of brand-new technologies that can meet the diverse needs of different markets.
BMW launches BMW New Generation X concept car
Question: China’s automobile industry is becoming more and more “volume-intensive”. Coupled with urban purchase restriction policies, many consumers consider family needs more when buying cars. Many Chinese car companies have a relatively accurate understanding of the needs of Chinese users, and some even directly use refrigerators, color TVs, and sofas as selling points. How does BMW's new generation of models respond to the advantages of Chinese car companies in understanding customer needs?
Zipzer: BMW does not make commercial vehicles, this is not our business scope. The BMW Group has a very rich product lineup, from MINI to BMW 7 Series, Rolls-Royce, etc. These are the areas in which we do well. In addition, we also provide long-wheelbase models according to customer needs, such as the new BMW 5 Series launched in the Chinese market. In addition to providing customers with more interior space and a more comfortable ride, we also want to ensure that we are providing them with a true BMW.
What does BMW represent? It must always meet the individual needs of customers and must be dynamic and full of driving pleasure. The BMW 7 Series is the largest model in its market segment. The BMW 7 Series in the Chinese market is specially tailored for Chinese consumers. We hope to provide Chinese consumers with exactly the products they need.In addition, the BMW Group only accounts for 3.3% of the global automotive market, and we focus on our market segments., to provide customers with the best products.
Question: In 2023, the sales of BMW pure electric models in the Chinese market will account for nearly one-third of the group's global BEV sales, but their share of overall sales in China is still relatively low, and the growth rate does not seem to meet expectations. How will BMW's new generation models make consumers more aware of BMW's pure electric models and promote the sales of BMW's pure electric vehicles in China?
Zipzer:The largest increase in BMW Group's global pure electric models comes from the Chinese market. Last year, nearly 100,000 BMW pure electric vehicles were sold in the Chinese market, a year-on-year increase of 138%. Obviously, the development of our electric vehicles in the Chinese market is not lagging behind. Looking at the global market, pure electric vehicle sales will account for 15% of the group's total sales in 2023, and fuel vehicles will account for 85%. In our view, this is an advantage, not a disadvantage.There is still huge customer demand for fuel vehicles, and the sales proportion of pure electric vehicles in China is not much different from that in other markets of the group.
Our goal is not just sales figures, but to stick to our positioning and target the luxury market segment, which is currently effective. What we give our customers is a commitment to provide products of outstanding quality, no matter what level, no matter what type of drive.
Question: The price war in the Chinese automobile market is still very fierce. Chinese consumers seem to be accustomed to the low prices of local brands. How can BMW maintain its competitive advantage in the market environment?
Zipzer:The main body of the price war is actually models priced under 300,000 yuan, but this is only the entry price of BMW products. We are very aware that competition in the Chinese automobile market is very fierce, and the market has given the answer in 2023. Last year, our sales of BMW pure electric models in China increased by 138% year-on-year. At the same time, we have also responded to market changes, and it seems to be effective now.But for the market as a whole, the era of high double-digit growth for all brands is over. The Chinese market is stabilizing, and we have experienced the same process in Europe.But this does not mean that there will be no rapid growth or business development. We have been strengthening our brand strength and product strength.
Question: In the Chinese electric vehicle market, intelligence has become very important. We have also seen cooperation between technology companies and automobile brands. The models they launched have had a certain influence in the industry. What do you think of this phenomenon? How does BMW respond to intelligent competition?
Zipzer:BMW is at the core of the development of artificial intelligence in cars, whether it is autonomous driving or the development of other automotive functions. We hope to make the car a partner of the customer, which is very novel in the industry. The essence of artificial intelligence is to allow the vehicle to observe the environment and predict customer needs in advance. This is critical to the user experience and cannot be achieved without extensive use of artificial intelligence in the car. We have been exploring artificial intelligence for more than 30 years. It is not new to us. The BMW DEE digital concept car we launched last year can see the widespread adoption of artificial intelligence.
Question: Among auto companies, some are talking about bringing changes to the auto industry, while others are talking about pushing the world forward. You once mentioned that BMW wants to become an influential company. What kind of influence is this?
Zipzer:There is a lot of uniqueness and diversity in the automotive industry.
BMW's influence focuses on three directions: First, BMW electric vehicles already have a certain influence and are growing rapidly in the luxury electric vehicle segment. The new generation models will be equipped with sixth-generation electric drive technology and new cylindrical batteries. Second, the influence of digitalization. In-car digital interaction has applied new technologies, bringing a new user interface and a new user experience. This represents a big step forward for us, and we have the ability to reshape the driving experience. Third, the BMW Group adheres to the concept of sustainable development, advocates circular economy and improves resource utilization efficiency. The most important thing is the system integration capability, which is not just hardware or software, but the integration and integration of hardware, software, etc. to form BMW's unique capabilities. Powerful system integration capabilities are BMW's strength.
Question: At this stage, consumers buying new cars in the Chinese automobile market will give priority to pure electric models due to license plate issues. The pure electric models launched by BMW, including BMWi's M high-performance models, all make us feel the fun of pure electric driving. In what ways do the new generation models further improve BMW's control genes and bring new surprises to consumers?
Zipzer:BMW's success comes from driving pleasure. Among the pure electric models we are currently launching, there are models with very M characteristics, such as i4M50, i5M60, i7M70 and so on. I personally have been driving the i7M70 for the past 18 months, and I no longer want to drive any other car. It is both electric and fun to drive. We build cars for customers who love driving, and BMW electric cars have a sporty feel like no other.
After entering the "new generation", we just mentioned that it will be equipped with a control unit developed by the BMW Group, which will increase the computing power by 10 times and further enhance the driving pleasure. A sense of sportiness is not just about acceleration from zero to 100 kilometers. Acceleration performance is relatively easy to achieve, but it is not easy to make the vehicle feel like a real BMW in all aspects such as cornering. No matter what form of drive it takes, a BMW is a BMW, and this is our core pursuit.