While many automotive manufacturers have announced ambitious timelines for phasing out fossil fuel-powered vehicles, BMW has consistently adopted a more pragmatic stance. The company's leadership, including CEO Oliver Zipse, has repeatedly stressed the importance of allowing consumers the freedom to choose their preferred powertrain, acknowledging current challenges such as the high cost of electric vehicles and the nascent charging infrastructure. A prominent BMW executive underscored this philosophy, stating that the combustion engine remains the core foundation that will financially support the company's future endeavors.
At BMW's Steyr facility in Austria, a hub for engine production with 1.2 million units manufactured last year, the commitment to conventional powertrains is evident. Development efforts are ongoing to ensure that three- to eight-cylinder engines meet upcoming Euro 7 emissions standards. This dedication extends beyond gasoline engines to diesel technology. BMW is actively experimenting with alternative fuels like HVO100, a pure hydrotreated vegetable oil, for diesel vehicles. This biofuel significantly reduces CO2 emissions and offers performance benefits, demonstrating BMW's pursuit of more sustainable solutions within the combustion engine realm.
Parallel to its investment in traditional engines, BMW's Steyr plant is also pivotal in the production of electric motors for the forthcoming Neue Klasse electric vehicles. Pre-production for the sixth-generation electric motors has commenced, laying the groundwork for prototypes. The series production of electric crossovers, such as the new iX3, is slated to begin later this year at BMW's new manufacturing plant in Hungary, signifying the company's tangible advancements in its electric portfolio.
BMW's forward-looking strategy anticipates an equal distribution of sales between internal combustion engine and electric vehicle models by the close of the decade. This ambitious target represents a significant leap, considering electric vehicles constituted less than 20% of the BMW Group's total sales in the previous year and the first quarter of the current year. Despite this aggressive electrification goal, BMW maintains its flexibility, refusing to prematurely abandon combustion engine development. Upcoming models like the M3, featuring a gasoline inline-six, and the M5, incorporating a V-8 plug-in hybrid system, exemplify this balanced approach, designed to comply with evolving emissions regulations while catering to diverse market demands.
In response to potential future regulations, such as the European Union's proposed 2035 ban on new combustion engine vehicle sales, BMW remains pragmatic. The company's focus is on preparedness for all possible scenarios and ensuring robust delivery capabilities, rather than speculating on policy outcomes. This adaptive mindset allows BMW to continue innovating across its entire product range, ensuring a versatile and resilient market position.