The electrification of the automotive market continues to progress rapidly, with not only flagship names like Tesla but also long-established companies that have been showcasing internal combustion engines for years now transitioning to electric motors. However, it appears that there is a problem causing trouble, especially for European manufacturers. Recently, BMW CEO Oliver Zipse touched upon this issue.
BMW CEO says price competition with Chinese companies is impossible
BMW has positioned itself as a company focused on electric vehicles in recent times and holds a significant market share in this regard. However, it seems that aggressive pricing policies from Chinese manufacturers, particularly BYD, are causing problems for European companies and leading to a decline in their profits.
BMW CEO Oliver Zipse stated that the strict restrictions on new petrol and diesel vehicles in the European Union have forced them into a price competition with Chinese electric car manufacturers. According to Zipse, winning this price competition seems nearly impossible. The CEO also mentioned that the basic automotive segment faces two possible outcomes: either it will completely disappear or it will no longer be dominated by European car companies.
Zipse noted that BMW has not yet been fully affected by this price war. However, in part of his speech, he referred to BYD taking the title of China’s best-selling car manufacturer from Volkswagen in April.
The CEO emphasized that they have a significant advantage, especially in the premium segment, compared to Chinese manufacturers. He also stated that other European companies in the entry and mid-range segments will need to find new ways to avoid being negatively impacted by this price competition.
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