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BMW expects EV sales to keep growing, but slower

Catherine by Catherine
15/12/2023
in BMW, car news
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BMW AG remains bullish on battery-powered electric vehicles in the U.S., even as it expects the sector’s market share gains to slow.

“Is there a growing market for electric vehicles? 100% yes,” Sebastian Mackensen, CEO and president of BMW of North America, told Bloomberg TV on Dec. 12. “Is the growth at exactly the same level as maybe some experts estimated a year ago or six months ago? Maybe not.”

Mackensen said BMW plans to produce six all-electric vehicle models at its Spartanburg, S.C., plant by 2030. The company also broke ground in October on a $700 million high-voltage battery assembly plant in nearby Woodruff, S.C.

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Last month, the United Auto Workers named BMW’s Spartanburg plant as one of its targets for a unionization drive. While not addressing that push directly, Mackensen said his company’s compensation packages are competitive, noting that benefits include the ability to lease a BMW.

The German automaker counters the higher price of EVs compared to gasoline-powered vehicles by offering lease credits to retail customers, which allows the company to tap into government subsidies. That makes its electric lineup more affordable.

“The consumer doesn’t seem to be open to paying a real price premium for a different propulsion technology,” Mackensen said in a separate interview Dec. 12. Leasing helps narrow the price gap, he said.

BMW sees EV market leader Tesla Inc. as a good measure of interest in EVs, and doesn’t see a partisan divide in demand between so-called blue states that typically vote for the Democratic Party and Republican-dominated red states.

“I don’t think it’s a red state-blue state issue,” Shaun Bugbee, executive vice president of BMW of North America, said in the interview. Tesla is the all-electric market leader, and “they sell in every state regardless of color. We see a similar path.”

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Catherine

I am Catherine Haggui, a distinguished Luxury Goods Specialist with over a decade of experience. As Director of Luxury Retail Strategies at a leading firm, I've cultivated a reputation for curating exclusive collections, elevating brand positioning, and exceeding sales targets. Renowned for my discerning taste and global market insights, I blend artistry and commerce to redefine luxury experiences. My work involves strategic partnerships, trend forecasting, and ensuring clients receive unparalleled access to the epitome of opulence.

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