BMW expects EV sales to keep growing, just at a slower pace

BMW remains bullish on battery-powered electric vehicles (EVs) in the US, even though it’s expecting the sector’s market share gains to slow.

“Is there a growing market for electric vehicles? 100 per cent yes,” Sebastian Mackensen, BMW of North America’s chief executive officer and president, told Bloomberg TV on Tuesday (Dec 12). “Is the growth on the exact same level as maybe some experts have estimated a year ago or six months ago? Maybe not.”

Mackensen said that BMW plans to manufacture six fully electric vehicle models in its Spartanburg, South Carolina, plant by 2030. The company also began construction in October on a US$700 million high-voltage battery assembly plant in nearby Woodruff, South Carolina.

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

EV leasing push

The German automaker is countering EVs being priced higher than petrol-powered vehicles by offering lease credits to retail customers, which allows the company to tap into federal subsidies. That makes its electric lineup more affordable.

“The consumer doesn’t seem to be open to pay a real price premium for a different propulsion technology,” Mackensen said on Tuesday. Leasing helps reduce the price gap, he added.

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BMW views EV market leader Tesla as a good measure of interest in EVs and does not 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, BMW of North America’s executive vice-president, said. Tesla is the market leader for full electric and “they sell in every state irrespective of colour. We see a similar path”. BLOOMBERG