Volkswagen and BMW are aiming to keep pace with Tesla in the global electric vehicle arena as the global mobility industry rapidly shifts to zero-emission mobility. While Volkswagen has announced it will spend as much as $191 billion over five years on its EV transition, BMW, on the other hand, has set aside a record $8.3 billion, or 5.5% of its EV revenue.
This comes as both German automakers are trying to keep up with Tesla, the world leader in electric vehicles. Despite being one of the frontrunners, BMW was never one step ahead with the i3 in 2013. It prefers to focus on hybrid technology rather than developing a range of electric vehicles. BMW expects more than 50 percent of its new car sales to come from electric vehicles, far exceeding its internal 2030 target, and is investing heavily to make it happen. BMW is also keeping options open, supporting e-fuels to extend the life of internal combustion engines, and developing hydrogen vehicles.
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Volkswagen also led the charge in EVs in 2014 with the e-Golf, but it wasn’t serious about EVs before Dieselgate. However, as the global mobility industry rapidly shifts to zero-emissions technology, both German auto giants have vowed to grab much of the market that Tesla holds the lion’s share of. Both automakers are focused on hat strategies, pouring billions of dollars into their respective EV projects.
Both Volkswagen and BMW are hoping to invest heavily enough to keep up with Tesla. However, neither of these two car brands can threaten Tesla in the near future because the latter is far ahead in terms of sales and technology promotion.
First published date: Mar 19, 2023, 11:17 AM CST