BMW has introduced its new BMW i3 electric vehicle (EV) with an "add-on mobility" option, which is part of an effort to win a “meaningful” portion of the EV market by helping owners bypass the traditional impediments to owning EVs.To help curb “range anxiety,” or the fear of being stranded when the battery runs out of juice, BMW is allowing EV owners to borrow gas-powered BMW vehicles for longer drives outside of the current EV range. This comes as part of the company’s wider drive to expand the appeal of its i3 EV.The projected range for its i3 standard model is around 80 to 100 miles on a single charge, BMW says. The company expects the EV market to grow between 150,000 and 160,000 vehicles globally this year, from 7,000 in 2010.
BMW has introduced its new BMW i3 electric vehicle (EV) with an "add-on mobility" option, which is part of an effort to win a “meaningful” portion of the EV market by helping owners bypass the traditional impediments to owning EVs.
To help curb “range anxiety,” or the fear of being stranded when the battery runs out of juice, BMW is allowing EV owners to borrow gas-powered BMW vehicles for longer drives outside of the current EV range. This comes as part of the company’s wider drive to expand the appeal of its i3 EV.
The projected range for its i3 standard model is around 80 to 100 miles on a single charge, BMW says. The company expects the EV market to grow between 150,000 and 160,000 vehicles globally this year, from 7,000 in 2010.
"We're not entering to be a niche player," said Ian Robertson, BMW’s sales chief. "We're targeting meaningful sales."
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While BMW has not disclosed sales or production goals for the i3, which will be followed early next year by a battery-powered i8 sports car, it says it expects the vehicle to make a "positive contribution" to earnings immediately.
Demand for EVs has been stifled by limited driving ranges, high costs and aesthetically uninspiring interiors. EV cars will only make up 0.1 percent of the overall U.S. vehicle market this year, 1.1 percent in 2017 and 2.3 percent by 2020, according to Edmunds.com.
BMW has set out on the same road as Tesla to try to change the stereotype of EVs and make owning a battery-powered car easier.
"Tesla is one of those brands which is trying to make this type of car premium and emotionally involving," said Adrian van Hooydonk, senior vice president of group design for BMW.
Tesla says it expects to deliver 21,000 Model S cars worldwide, and the EV’s demand has surprised industry experts, investors and analysts. In June, Tesla introduced a system that allows battery packs in EVs to be swapped in roughly 90 seconds. The system provides an alternative to charging EVs, which is an effort to convince consumers that they are “more convenient than a gasoline car.”
BMW’s i8 will compete with Tesla's Model S sedan, which starts at around $70,000 before a federal tax credit. Tesla is working on a more affordable vehicle that would compete with the i3.
BMW says it believes the i3 will be well-received people living in wealthy urban areas of California, Europe and Asia. The company is counting on projections that the number of people living in urban environments will more than double to 4-5 billion over the next 25 years.
While the i3's nearly $50,000 price tag is well above the conventional BMW 3-Series sedans, it also qualifies for tax breaks and upfront government incentives in markets such as Britain and the United States.
Published Aug 7, 2013 2am EDT / 11pm PDT / 7am BST / 8am CEST
Managing Director, Sustainability & Social Impact
Deutsche Bank
Mike Hower is a sustainability communicator and connector committed to helping purpose-driven businesses and people unlock their full potential for positive impact. As founder and principal consultant at Hower Impact, he works with companies to translate sustainability strategy into stories that inform, engage and inspire investors, customers, employees, regulators and other stakeholders in the service of social, environmental and business goals. Through his Impact Hired initiative, he works to connect and engage corporate sustainability professionals at all stages of their careers.
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