BMW and Mercedes Entering the Electric Car Market: Outlook and Strategy

As the automotive industry evolves, BMW and Mercedes continue to adapt their strategies to integrate electric vehicles (EVs) into their product lines. Around 2019/2020, both brands are expected to launch more comprehensive offerings under their respective i-brand and EQ brand names, following a similar approach to the likes of Audi, Volkswagen, and Porsche. However, the journey to full EV adoption has its challenges, particularly in the realm of battery technology.

Current Offerings and Technology Limitations

Currently, battery technology is not advanced enough to provide long-range capabilities, short recharging cycles, or a reasonable weight and cost for a typical 'family' car. Until these technologies can be improved, BMW and Mercedes have primarily focused on short-range electric vehicles and plug-in hybrid models. Tesla lovers and start-up proponents may strongly disagree, but it is important to consider these limitations when evaluating their current product offerings.

BMW's Current Models and Strategies

BMW currently has several models in its stable that aim to address these limitations. The i3 is an urban-focused electric vehicle that can be powered by an internal combustion engine (ICE) as an option. While it is a practical second car for city use, the i3 is not designed for long-range travel.

The i8 is a hybrid vehicle that showcases BMW's engineering capabilities, despite being developed relatively late in the hybrid and electrification game. The i8's main purpose is to demonstrate BMW's cutting-edge technology in the hybrid and electric segments.

In terms of plug-in hybrid models, BMW has started to incorporate this technology on its F-chassis, such as the 328e and X5 eDrive. These vehicles offer a balance between performance and environmental benefits, with reduced emissions and fuel consumption.

Future Roadmap for BMW

BMW’s future roadmap includes more widespread integration of EVs across its line-up. This means that every BMW model will provide an eDrive version, such as the 3-series, 5-series, and beyond. The i5, slated to slot between the i3 and i8, is expected to be a more practical main car, offering features that appeal to a broader audience.

Mercedes' Current Models and Strategies

Mercedes currently offers some plug-in models such as the S500, C350, B-class, and smart fortwo electric. However, they have not released a brand-new dedicated electric car yet. While rumors exist about future dedicated electric vehicles, it is not entirely surprising if they suddenly introduce one.

Future Roadmap for Mercedes

Mercedes' future roadmap includes new models based on new platforms that will offer plug-in hybrid versions. Despite advancements, there has been no news about dedicated electric car models yet. This may change as the technology progresses and consumer demand shifts.

Why BMW and Mercedes Don't Focus Solely on Pure Electric Cars

There are several reasons why BMW and Mercedes have not focused entirely on electric vehicles:

Profitable Business Models: Their traditional models are highly lucrative and already meet or exceed the majority of what the automotive industry offers in terms of performance and capabilities. Diversified Offerings: BMW and Mercedes sell more than just cars. They have divisions for motorcycles (BMW and Rolls-Royce) and commercial vehicles (Mercedes-Benz trucks and buses). Market Demand: The demand for all-electric vehicles varies. In oil-rich Arab states, there may be less interest in EVs, while in countries with high oil prices and stringent regulations, there is more demand. Competitive Edge: Tesla's success is due to its ability to offer cars that align with consumers' desires for high performance, easy usability, practical features, and aesthetics. While the Tesla Model S offers competitive fuel consumption, BMW and Mercedes focus on maintaining their bread-and-butter models (3-series and C-classes) to cater to a wider market.

However, with increasing pressure from regulatory changes, rising oil prices, and consumer trends, it is clear that BMW and Mercedes will need to offer more comprehensive EV models. As Tesla continues to prove the potential of fully electric vehicles, we can expect BMW and Mercedes to intensify their efforts in this space.

The automotive industry is transforming, and both BMW and Mercedes are navigating this shift strategically. While they may have different approaches, the ultimate goal remains the same: to provide the best possible vehicles that meet the evolving needs of consumers.