BMW’s chief financial officer stated in a media roundtable that the company has passed the turning point for sales of combustion engine vehicles and that electric cars are now responsible for the majority of sales growth.

“The tipping point for the combustion engine is already there,” CFO Walter Mertl said, adding that in his view it had been passed last year.

“The current sales plateau for combustion cars will continue and then fall slightly,” he predicted, pointing to looming environmental regulation that will restrict sales of such vehicles.

Manufacturers are facing pressure to increase their electric vehicle (EV) lineups since new fossil fuel-emitting car sales will be prohibited starting in the middle of the next ten years by regulatory deadlines ranging from China to the European Union and certain U.S. states.

BMW earned a 15% all-electric sales share last year. By 2026, it wants to increase that to 33% when it introduces six new EV-only vehicles to its “Neue Klasse” lineup in an endeavour to outpace rivals in terms of technology. This is a multibillion-euro endeavour.

Nevertheless, Mertl stated that BMW’s profit margins for both combustion engine and all-electric vehicles won’t catch up until at least 2026, citing the greater expenses associated with implementing new battery technology for later models.

Without providing more information, Mertl stated that cars in specific price groups are also probably to see discounts.

The company is adhering to its previously announced target of 3 million vehicles sold by 2030 with an 8-10% margin in its automotive division, he noted – a cautious goal lying below its estimated 2023 margin of roughly 10.3%.

Benefiting from lower battery prices and improved efficiency per kilowatt hour, BMW CEO Oliver Zipse stated in September that the business will be “at least as profitable” when selling the “Neue Klasse” EVs at scale.

(Adapted from AutoNews.com)