Shifting Gears

In parallel, consumer adoption began to rise as buyers increasingly understood the benefits of affordable Electric Vehicles (EVs) with lower associated environmental and health impacts. With BMW’s brand and identity deeply intertwined with the internal combustion engine, pivoting to electric vehicles was risky, requiring massive investment and significant support from both governments and consumers. 

In response, BMW transformed itself into a leader in electric mobility, starting with ‘Project i’ in 2008.^[4] This came to fruition in 2013 with the launch of the pioneering BMW i3 all-electric city car, BMW’s first mass-production zero-emissions vehicle. It captured ~12% of the nascent battery electric vehicle (BEV) market in its first full production year and won Car of the Year 2014.^[5,6]

Strong sales were supported by government incentives such as the UK’s £5,000 Plug-in Car grant scheme which helped EVs achieve pricing that was more competitive with incumbent petrol and diesel cars.^[7] Today, BMW offers several electric models.^[8] 

Since the birth of Project i, government EV incentive schemes have been a catalyst for BMW’s transformation. Schemes such as the U.S. $7,500 EV Tax Credit and China’s \30,000 tax exemption for New Energy Vehicles, have made electric vehicles more affordable and accessible, driving up demand and accelerating the transition to sustainable mobility.^[9,10]

In 2021 the European Commission began the European Battery Innovation Project, with BMW a direct beneficiary.^[11] This project was declared an IPCEI (Important Project of Common European Interest) highlighting its importance.

More recently, the UK government announced £75m of funding to support Mini’s plant in Oxford to transition production to build electric cars.^[2] This came alongside the UK government’s £381m investment in EV charging points, highlighting its support of the wider infrastructure enablers.^[3]

Consumer acceptance has been steadily increasing as fears over lack of infrastructure and battery range are being overcome. In 2022, 52% of consumers who intended buying a car in the following two years say they would choose an EV or hybrid model.^[12]

This shift is reflected in increased annual delivery figures for BMW’s EV ranges over the past five years. In 2023, BMW's annual EV delivery figures were more than two times greater than those in 2018 (~330,000 vs. ~140,000, respectively).^[13] EV annual deliveries were expected to continue to increase with ~179,000 EV deliveries completed in the first half of 2024, a +34.1% increase compared to the same period in 2023.^[14]

BMW’s decade-long EV journey serves as a beacon for other automakers and industries seeking to drive sustainable transformation, exemplifying the necessity of decisive action to transition away from carbon-intensive fuels towards greener alternatives. BMW’s journey also underscores the undeniable role of government and public acceptance in enabling sustainable change. When coupled with substantial investment and commitment to innovation, we believe that even the most deeply entrenched companies can embark on a path towards a cleaner future.