BMW AG (ETR:BMW)’s chief executive Oliver Zipse has blamed the European Union’s 2035 ban on the sale of petrol-powered cars for fuelling a price war with Chinese manufacturers.
Speaking prior to the IAA Mobility conference in Munich, Zipse warned producers of cheaper electric vehicles (EVs) are being forced into competition with Chinese firms that began manufacturing such cars years ago.
Given the de facto head start their Chinese counterparts had in securing raw materials needed for EVs, such as lithium, Zipse argued European firms may well lose out.
“I want to send a message,” he said while discussing the ban, “I see that as an imminent risk.
“The base car market segment will either vanish or will not be done by European manufacturers.”
Though carmakers will still be allowed to produce synthetic fuel-burning vehicles, Zipse joins growing criticism of the ban given the continent’s lack of charging infrastructure and a shortage of critical minerals.
BMW’s position as a developer of cars on the luxury end of the scale should leave it largely unaffected, Zipse reassured.
However, increasing pricing pressure from the likes of BYD entering the market from China, alongside Tesla Inc (NASDAQ:TSLA), means competition is set to become ever-more fierce, he warned.