BMW and Mercedes Make Major Push into Electric Cars
Introduction
BMW and Mercedes are ramping up their efforts in the electric car market to compete with Chinese players and catch up to Tesla. The two automotive giants recently unveiled electric concept cars and new platforms at the IAA Mobility motor show in Munich, Germany.
Mercedes-Benz Concept CLA Class
Mercedes-Benz showcased its Concept CLA Class, an electric vehicle built on a new architecture that will be used for future battery-powered cars. The concept car boasts a range of 750 kilometers (466 miles) and an impressive fast-charging capability of reaching 400 kilometers in just 15 minutes.
BMW Vision Neue Klasse
BMW revealed its Vision Neue Klasse, another electric concept car that demonstrates the company’s commitment to electric vehicles. The Neue Klasse platform will be utilized for BMW’s upcoming EVs, set to enter production in 2025. BMW CEO Oliver Zipse stated that the company aims to double its EV sales this year and have 15% of its global sales as battery EVs by the end of 2023.
European Automakers Closing the Gap
By developing dedicated EV platforms, Mercedes and BMW are making significant strides in the electric vehicle era. Analysts believe that these platforms will considerably narrow the gap with Tesla and Chinese competitors, but there is still work to be done.
Price War and Market Competition
Tesla currently dominates the global EV market with a 20% share, followed by Chinese company BYD with 15%. Tesla’s aggressive price cuts have led to a price war among competitors. Mercedes and BMW, operating in the premium segment, are focused on offering value rather than volume. Volkswagen, on the other hand, plans to launch affordable EV models to capture different segments of the market.
The Importance of Technology
As the car industry shifts toward electric vehicles, technology plays a crucial role in winning over consumers. Tesla’s vertically integrated platform and advanced software, including autopilot features, have set the standard for the EV industry. Chinese automakers such as Xpeng and Nio are also incorporating semi-autonomous driving features. Incumbents like BMW are showcasing their technological innovation, with features like heads-up displays and digital interfaces.