BMW AG (ETR:BMW) said demand for combustion engine-powered cars has peaked and hit a “tipping point” as appetite for electric vehicles (EVs) grows.
According to chief financial officer Walter Mertl, sales growth at the Mini and Rolls-Royce owner is now mainly fuelled by EVs and has been since last year.
“The tipping point for the combustion engine is already there,” he said in a media roundtable.
“The current sales plateau for combustion cars will continue and then fall slightly,” he added, in line with wider efforts to encourage the shift to EVs.
Margins will likely remain better among combustion engine vehicle sales until 2026, however, Mertl said, as costs of the likes of batteries remain high.
BMW is then targeting 3 million sales with margins of between 8% to 10% come 2030, as costs of producing new EV ranges come down.
Such ranges will see the manufacturer introduce six new models under the Neue Klasse EV line, in a bid to take all electric sales from a 15% share last year, to 33% by 2026.