BMW mulls adding range-extending engines to EV models in China

[MUNICH] BMW is weighing the addition of range extenders to some of its vehicles amid growing demand for the technology popularised by its Chinese rivals, according to sources familiar with the company’s strategy.

The company may make range-extender versions of top-end models such as the X5 SUV and 7-Series sedan, as they are large enough to incorporate a small engine, the sources said, asking not to be identified as the deliberations are private. BMW may become the first German automaker to offer the technology that’s not yet widely available in Europe.

BMW and its German peers are trying to revive sales in China after losing market share to local manufacturers led by BYD. Range extenders have become popular in the world’s biggest car market and are also being rolled out in the US, where customers favour large SUVs and frequently take long trips. BMW’s long-wheelbase variants sold in the US and China would be especially well-suited for the technology, the sources said.

Range-extender cars come with a small petrol engine that does not drive the wheels like in a conventional hybrid, and instead acts as an on-board generator to recharge the battery. BMW already makes some components needed in-house, including efficient small engines as well as gearboxes, which would reduce the cost of introducing the technology, the sources said.

BMW is “continuously analysing usage patterns, customer needs and market developments and reviewing the market potential of various technologies”, the company said, declining to be more specific.

In China, range extenders are increasingly popular, especially in the SUV segments of the market where the Germans compete. Local models include BYD’s Yangwang U8, Aito’s M9 and Li Auto’s L9.

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BMW is not alone in pursuing the technology. Stellantis is preparing a range-extended Ramcharger pickup truck for the US market, while Volkswagen’s Scout plans to offer rugged range-extended SUVs there in the coming years. In the European Union, Renault is including the technology in its investment deliberations as the French automaker prepares its next business plan, according to chief executive officer Francois Provost.

“For middle to bigger sized cars it makes no sense to force all-electric models,” Provost said. “We need to think about clients, and range extenders are a good solution.” BLOOMBERG