BMW says ICEVs have peaked

From Bloomberg

BMW AG says demand for its luxury cars powered by gasoline reached its highest point last year and expects all-electric models to lead future growth.

The German premium-car maker has well-filled order books for battery cars with a target of half a million vehicle sales this year, roughly a fifth of total deliveries, Chief Financial Officer Walter Mertl said. BMW group EV sales jumped 75% last year, driven by models like the i4 sedan and as overall sales growth has slowed in the US and some European countries.

“The tipping point for combustion engines was last year,” Mertl, 49, said on a call with journalists, with regulation to cut carbon dioxide emissions capping any expansion. “Future volume growth will primarily come from battery electric vehicles.”

BMW saw strong EV orders during November and December, said Mertl, with demand in Europe set to keep growing. The manufacturer hasn’t seen any pullback, and expects the new i5 sedan and additional Mini brand EVs to boost sales, he said.

“The current sales plateau of combustion cars will continue and then fall off slightly,” he said.

By the end of the decade, BMW’s EVs will have higher returns than its combustion-engine cars, Mertl said.