The automotive industry is undergoing a major transformation. While established manufacturers like Volkswagen and BMW still produce gasoline and diesel cars, electric vehicles are becoming increasingly widespread and popular. In addition, Tesla and many Chinese companies are only producing in the EV category, accelerating this transformation. This is leading to a cold war, especially between the old and the new. BMW CEO Oliver Zipse recently revealed that in this struggle, the loser would be them. Here are the details…
Chinese Manufacturers Gaining Ground in Electric Vehicle Market
As you know, Europe has long been the heart of the automotive industry. Many manufacturers that are over 100 years old have become market leaders because they excel in engineering and have successful R&D departments. However, the rise of electric vehicles has changed this. Tesla and other new players have entered the market, ushering in a transformative era for the industry. This has been further complicated by competition from Chinese manufacturers, as well as Europe’s upcoming ban on gasoline and diesel engines.
Most recently, BMW CEO Oliver Zipse made a striking statement on this issue. Zipse said that the EU’s ban on new gasoline and diesel cars is pushing European automakers into a price war with Chinese rivals, which he said are “fundamentally impossible” to win. Zipse also said that the basic car segment will face two possible outcomes: either it will disappear, or it will no longer be dominated by European automakers.
He noted that Chinese automakers, such as BYD, are aggressively expanding into the electric vehicle market and are becoming increasingly ambitious. Zipse said that BMW is still not affected by the price war, but that it has already led to declining profits for many Chinese automakers. He pointed to Volkswagen, which has been dethroned as China’s best-selling automaker by BYD.
Zipse said that BMW has a number of advantages over Chinese automakers in the premium segment, where its brands are more popular. However, he acknowledged that European automakers will need to find new ways to compete in the basic car segment. It seems European automakers will need to find new ways to compete in the Chinese market.
RELATED:
- Best Smart Rings of 2023
- 2024 Mercedes CLA Concept Reveals Sleek Design, 466+ Mile Electric Range
- BYD’s Affordable Dolphin Targets Japan, Cornering Toyota and Honda
- Tesla may partner with Samsung for the autonomous driving chips for upcoming EVs
- Electric Vehicles Go High-Tech: Multi-screen Smart Cockpits to Become Standard in EV’s
(source)
