In a keynote speech at the IAA auto show in Munich, BMW's Chief Executive, Oliver Zipse, revealed an ambitious plan to introduce six new electric models within a span of just 24 months. These vehicles will be part of the forthcoming “Neue Klasse” electric-only lineup, set to make its debut in the mid-2020s. This announcement underscores BMW's commitment to electrification and its determination to compete with established electric vehicle pioneer, Tesla.
The production of the Neue Klasse electric vehicle platform is slated to commence in 2025 at BMW's facility in Debrecen, Hungary. Zipse, speaking at the event, emphasized the rapid pace of BMW's rollout strategy, which encompasses a diverse range of models, from Sports Activity Vehicles (SAV) to sedans. What unites these vehicles is their shared reliance on pure electric power.
BMW's confidence in the profitability of the upcoming Neue Klasse range mirrors the success it has achieved with its existing portfolio of electric cars. This initiative is central to BMW's broader strategy to challenge and rival Tesla, a formidable force in the electric vehicle market, and the American automaker also made a notable presence at this year's IAA event.
Notably, BMW recently revised its EBIT (Earnings Before Interest and Taxes) margin outlook for the cars division in the fiscal year 2023. The updated projection anticipates a margin falling within the range of 9% to 10.5%, up from the previous estimate of 8% to 10%. This upward adjustment is attributed to a robust order backlog and improved availability of BMW's premium vehicles, reflecting the company's strong market position and promising outlook in the electric vehicle landscape.