As mentioned in the previous article, the three leaders of the luxury car BBA, whether in the car market or the SUV market, their competition is extremely fierce. The market for fuel vehicles has become saturated. In the coming 2020, which is particularly critical for the development of these three enterprises, if BBA wants to maintain its absolute leadership in Chinese market, the investment in new energy is urgent. However, judging from the current situation, the two Bs in the BBA, BMW and Mercedes-Benz, are not on the same starting line of the electric vehicle market. In 2020, their gap is likely to be widen.
BMW: electrified layout has left rivals behind
Liu Zhi, president of BMW (China) Automobile Trading Co., Ltd., told journalist: “The new energy business is like a marathon. The marathon is a long-term manifestation of comprehensive strength, regardless of the speed in a short period of time." From his words, we can easily understand that the competition of luxury car brands is not a one-year or two-year competition, but a comprehensive and long-term competition. There are many ways to achieve short-term sales goal, but many of them are not sustainable. More attention should be paid to the building of comprehensive system capabilities.
At present, the BMW new energy family covers the product matrix of multiple market segments from compact cars to large luxury cars, from SUVs to super sports cars. Recently, BMW, which has strong ambitions in the new energy market, once again announced a new product expansion plan. According to Gao Xiang, vice president of marketing of BMW Huachen Automotive Co., Ltd., as of 2021, there will be a number of models on the market, including the BMW brand's mass production of the iX3 models at the BMW Shenyang production base, as well as mass production versions of the iNEXT and i4. Gao Xiang said: "By 2025, the BMW Group will have 25 new energy models, including 12 pure electric models." BMW has a clear new energy vehicle development strategy and product layout and will gradually introduce new products to the market in the future to consolidate its leadership in the new energy vehicle market.
Also, BMW will also bring electrification to the race, consolidating its position as a leader in mobile mobility and future technological innovation. For example, BMW participate in Formula E, the top event of electric vehicles, the experience gained on the project platform will be directly incorporated into the development of mass production models, which will bring the technology transfer between racing cars and production cars to a whole new level.
From the current new energy product matrix of Mercedes-Benz and BMW. BMW's product lineup is the most complete, and its sales have also hit its opponents. But in the flagship products that highlight their latest technological achievements, the two brands are comparable. Before that, the first to compete will be the latest technology of each brand. According to Gao Xiang, the BMW iNEXT, which will be mass-produced in 2021, represents many of BMW's technological innovations. In the process, BMW has a very clear strategy-to integrate the latest technology into the product according to the pace of technology replacement, to provide consumers with the latest generation of technology.
At the same time, BMW continues to provide a large number of public charging stations and private charging stations around China, providing complete supporting services for new energy users. The Chinese market is the best environment for the BMW Group to implement its new energy strategy, and BMW will continue to increase our investment in new energy products and technologies." BMW is full of confidence in the Chinese new energy market in the future. For the mass production of i4 and iNEXT, BMW's sales in China's new energy vehicle market will be a considerable and historic figure.
Mercedes-Benz: We may be late in the electric car market, but we will not be absent
In January 2018, with regard to India's plan to fully realize electric vehicles by 2030, several automobile companies including Mercedes-Benz have raised strong objections, saying that governments should not fully develop electric vehicles. The cars that will run on will be hydrogen energy. Mercedes-Benz said that comprehensively encouraging the development of electric vehicles will hinder the research process of other energy sources, thereby missing better technical options.
Looking at BMW's overall layout in new energy, Mercedes-Benz seems to be late. At present, it only has S-class and GLE-class plug-in hybrid models, and the prices are all in the millions. However, Mercedes-Benz will pay more attention to the layout of mid-range models in the future. They hope that by 2025, Mercedes will have 15% to 25% pure electric models.
To say that in the future luxury car market, Mercedes-Benz and BMW are better than BMW. First of all, whether it is the competition of luxury cars or affordable cars, the future must be competition in the new energy vehicle market. Whoever can make a more rational layout in the new energy vehicle market can win development. But the battle for the new energy vehicle market is not necessarily just a battle for pure electric vehicles. The form of new energy can be various. It is a competition of comprehensive strength in various aspects such as clean environmental protection, intelligence, network connection, sharing, etc. Secondly, the hydrogen energy vehicle market is still immature. The mainstream of the market in the next few years is still electric vehicles. Although Mercedes-Benz is optimistic about the development of hydrogen energy vehicles, it currently appears that Mercedes-Benz's electric vehicle products have not introduced special auto models nor take concrete actions.
Finally, whether it is Mercedes-Benz or BMW, a new batch of luxury brands will surely emerge in the future luxury car market. Traditional fuel vehicle companies will face obsolescence unless they make strategic adjustments.
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