Electrification in the automotive market continues unabated. In addition to flagship names such as Tesla, giant companies that have been appearing in this field with internal combustion engines for years have also started to switch to electric motors. However, it seems that there is a situation that causes trouble for European manufacturers in particular. Finally, BMW CEO Oliver Zipse touched on this issue.
BMW CEO says price competition with Chinese companies is impossible
BMW is a company that has recently focused on electric cars and holds a significant market share. However, it seems that the aggressive pricing policies of Chinese manufacturers, especially BYD, in this field are putting European companies in trouble and causing their profits to decrease.
BMW CEO Oliver Zipse stated that the EU’s strict restrictions on new gasoline and diesel vehicles force them to compete on price with Chinese electric car manufacturers. According to Zipse, this price competition seems fundamentally impossible to win. The CEO also said that the core car segment will face two possible outcomes: It will either disappear completely or it will no longer be dominated by European car companies.
Zipse stated that BMW has not yet been fully affected by this price war. However, in part of his speech, he referred to Volkswagen, which BYD took away from China’s best-selling automaker title in April.
While the CEO stated that they have a serious advantage over Chinese manufacturers, especially in the premium segment, he said that other European companies need to find new ways to avoid being harmed by this price competition in the entry and middle segments.
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