BMW's Ambitious Bet on Electric Vehicles and Software-Powered Cars

Strategic Insights -

BMW is revolutionizing its approach to carmaking with the launch of its iX3 sport utility vehicle, the first to be developed on its Neue Klasse platform. The German carmaker is betting on software-defined vehicles to take on Chinese rivals and Tesla, with a centralized computer system replacing hardware as the key feature. This shift will deliver more than 20 times the computing power of current vehicles, slashing the complexity of electronics and enabling features like longer electric ranges, faster charging, and improved infotainment displays.

Key Takeaways:

  • BMW's iX3 SUV will be the first vehicle developed on the Neue Klasse platform, a major shift towards software-defined vehicles.
  • The Neue Klasse platform will deliver more than 20 times the computing power of current vehicles, enabling advanced features and improved performance.
  • The platform will allow carmakers to improve vehicle performance even after they are sold to consumers and create new sources of revenue through services.
  • BMW has invested over €10bn in developing the Neue Klasse technologies, and its rollout has the potential to change the future of the car industry.
  • The technology will be used in over 40 new models and updates in the next two years, with a transition from hardware to software as the key feature.
  • BMW's Neue Klasse platform will also provide the basis for its future internal combustion and hybrid models.
  • The company's EV sales have grown to 18% of global deliveries in the first half of the year, outpacing Mercedes-Benz and Volkswagen.

Statistics:

  • €10bn - The amount invested by BMW in developing the Neue Klasse technologies.
  • 20 - The number of times the computing power of current vehicles will be increased with the Neue Klasse platform.
  • 40 - The number of new models and updates that will be developed on the Neue Klasse platform in the next two years.
  • 18% - The percentage of BMW's global EV sales in the first half of the year.
  • 800km - The longest electric range possible with the iX3 SUV.
  • 350km - The amount of electric range that can be added in just 10 minutes with the iX3 SUV.

Sources:

  • Bloomberg: "BMW Bets on Electric Vehicles and 'Superbrains' to Take On Tesla"
  • Bernstein: Interview with analyst Stephen Reitman
  • CAPTION(S): Daniel Kraus