BMW Chief Executive Oliver Zipse says the premium brand won’t abandon the lower-priced market segment as it navigates the transition to electric vehicles.
“We are not leaving the lower market segment,” Zipse said while speaking during an event in Berlin. “Even if you consider yourself a premium manufacturer, it is wrong to leave the lower market segment – that will be the core of your business in the future.”
Last week, BMW’s CFO said the company expected sales of fully electric vehicles to double this year compared to the previous year but warned that rising inflation and interest rates will affect the number of incoming orders, especially in the European market.
The strategy to maintain a footing in the lower-priced market differs from that of rival premium automaker Mercedes-Benz, which announced in July that it would dedicate 75% of its future investments to top-end vehicles and “core luxury” C-Class and E-Class models. The automaker also plans to cut back on the number of entry-level models.
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