BMW has unveiled a new generation of electric cars to compete with Tesla and the Chinese company BYD. With the technology-focused “Neue Klasse” concept, the company aims to boost sales in its key market of China, she stated agentura Bloomberg.
The Vision Neue Klasse concept, on display at next week’s IAA in Munich, shows BMW’s special study for electric cars to be introduced in 2025 – around the time Mercedes-Benz Group AG will introduce its new battery-powered models.
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With the elegant coupe, BMW deviates from the ten-year tradition of promoting mainly the performance of its “perfect driving machines”. Instead, it wants to impress with a digital display projected across the entire width of the windshield, as well as software that can process voice commands and hand gestures. It is meant to be a step towards customers in China who are increasingly reaching for domestic brands such as BYD Co. and Nio Inc., which have been better at making electric cars with goodies tailored to local tastes.
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CEO Oliver Zipse said the Neue Klasse “determines our direction for the next decade”.
BMW, Mercedes and Audi have long dominated sales of premium combustion-engine cars in China, but have found themselves on the tail end as a result of the country’s rapid transition to electric cars.
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BYD dethroned VW as China’s best-selling carmaker this year, and Mercedes cut prices on its flagship electric sedan late last year after disappointing sales. Electric cars and plug-in hybrids are expected to account for 90% of the world’s largest car market by the end of this decade, increasing the urgency for Western premium brands to accelerate their offerings. A price war in China initiated by Tesla has also added to the pressure.
“BMW is growing in China, especially in electric cars, and the price war does not affect the carmaker due to its position in the premium segment,” Zipse said, adding that the Neue Klasse model will be even more profitable than the current range of battery-powered cars.
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The top BMW Neue Klasse models will have a range of up to 800 kilometers and charge from 10% to 80% in less than half an hour, which probably won’t make them the best models in their class. Last year, an electric prototype from Mercedes traveled more than 1,000 kilometers on a single charge.
However, according to a recent consumer survey by consultancy AlixPartners, BMW still ranks second in China in terms of technological features in its cars. It placed behind Geely’s Zeeker, but ahead of Xpeng, Tesla and VW.
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Despite the new focus on digital features, BMW isn’t throwing its brand tradition completely overboard. While most electric cars today offer snappy acceleration, Zips says the Neue Klasse will be more fun to drive at higher speeds than many of its competitors.
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