Well ahead of its 2030 target, BMW expects over 50% of new sales to be all-electric vehicles and could envision a hydrogen-powered car entering production in the second half of the decade, the premium automaker said on Wednesday.
By 2025, a quarter of new sales will be all-electric, the company said, rising to a third by 2026 — an ambitious jump from last year’s 1 to 11 ratio.
One of the most prominent advocates of hydrogen fuel cell technology among automakers as a viable option alongside battery-powered cars, Chief Executive Oliver Zipse said he also envisions a hydrogen-powered vehicle entering production by mid-decade
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“We see hydrogen electric vehicles as a sensible addition to e-mobility, even with a slight delay,” said Zipse at a press conference on the company’s annual results.
The BMW iX5 Hydrogen* test vehicle, which has a range of 500 km (310 miles) and a three to four-minute refueling capability, will be tested in different countries, BMW said in a statement.
BMW last week confirmed preliminary results released for 2022, including an 8.6% margin in its auto business on earnings before interest and taxes of 10.6 billion euros ($11.37 billion) and cash flow of 11.1 billion Euro.
CAUTIOUS BUT OPTIMISTIC
BMW on Wednesday forecast a margin of 8% to 10% for its auto segment in 2023, up from last year’s target of 7% to 9%, and said it expects demand in premium markets to be stable in 2023 despite inflation and rising interest rates.
Still, the company forecast a modest decline in new registrations in Europe overall, which Bank of America said made BMW more cautious than Volkswagen, which posted a sharp rise, or IHS’s Markit forecast of over 5% growth year over year.
BMW CFO Nicolas Peter, who is retiring later this year, said he expects the supply of energy and chips to stabilize, but predicts that there will still be significant costs due to logistics bottlenecks and high raw material prices.
Still, the company said it plans to keep prices stable after years of dealing with rising costs by passing them on to customers.
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