Volkswagen and BMW aim to keep pace with Tesla in the global electric car sector, as the global mobility industry is rapidly transitioning to zero-emissions vehicles. While Volkswagen has announced that it will spend a whopping $191 billion over 5 years on electric vehicle conversions, BMW, in contrast, has allocated a record $8.3 billion, accounting for 5. 5% of sales for electric vehicles.
This comes at a time when both German carmakers are trying to catch up with Tesla, a global leader in the electric vehicle segment. Despite being one of the leaders, BMW car was never used in the first place with the i3 in 2013. It prefers to focus on hybrid technology rather than developing a line of electric vehicles. BMW expects more than 50% of its new car sales to come from electric vehicles, far exceeding its internal target of 2030, and is spending big to make that happen. BMW is also leaving many options open, favoring e-fuel to prolong the life of internal combustion engines and developing hydrogen cars.
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Volkswagen also took the lead in the EV segment with the e-Golf in 2014, but until diesel happened, it wasn’t serious about electric mobility. However, with the global mobility industry rapidly transitioning to zero-emissions technology, both German auto giants have vowed to capture a large share of the market, where Tesla holds the lion’s share of the market. most. Focusing on caps strategy, both automakers are pouring billions of dollars into their respective electric vehicle projects.
Both Volkswagen and BMW hope that a large investment will be enough to keep up with Tesla. However, neither of these two car brands can threaten Tesla in the near future, as Tesla is far behind in the race in terms of sales and technology deployment.
First published date: March 19, 2023, 11:17 am IST
