BMW has unveiled its first prototype of an electric vehicle (EV), marking a significant step in its efforts to compete with Tesla and meet the demands of the rapidly growing Chinese EV market. The Vision Neue Klasse concept car, showcased at the upcoming IAA show in Munich, introduces BMW's dedicated EV platform, scheduled for release in 2025. This move coincides with Mercedes-Benz Group AG's plans to introduce its own battery-powered models.Unlike its traditional emphasis on performance, BMW is now highlighting digital features, including a full-width windscreen digital display and advanced software capable of processing voice commands and hand gestures. This shift in focus is aimed at appealing to Chinese consumers, who have shown a preference for domestic EV brands like BYD Co. and Nio Inc., known for their technology-focused offerings.BMW's CEO, Oliver Zipse, described the Neue Klasse as setting the company's course for the coming decades. BMW, along with Mercedes and Audi, once dominated China's premium combustion-engine car market. However, they have faced challenges due to China's swift transition to electric vehicles. BYD recently became China's top-selling automaker, while Mercedes had to reduce prices for its flagship electric sedan in response to slow sales.The Chinese EV market is expected to be predominantly electric cars and plug-in hybrids by the end of the decade, intensifying the competition among Western premium automakers. Tesla's price war in China has added to the pressure.Zipse mentioned that BMW's growth in China, particularly in electric cars, is unaffected by the price war, thanks to the brand's positioning in the premium segment. He also emphasized that the Neue Klasse is expected to be more profitable than the company's existing lineup of battery-powered cars.While the Neue Klasse models are projected to have an impressive range of up to 800 kilometers (497 miles) and quick charging capabilities, BMW acknowledges they may not be class-leading in these aspects. However, Zipse highlighted that BMW aims to offer a more enjoyable driving experience at higher speeds compared to many competitors.Despite the focus on digital features, BMW intends to retain its brand traditions. A consumer survey by consultancy AlixPartners revealed that BMW ranks second in China in terms of tech features in its cars, trailing Geely's Zeekr but surpassing Xpeng, Tesla, and VW.
