BMW is planning a less expensive version of their electric “Neue Klasse” platform in an effort to make an affordable model available on the electric vehicle market. This new development represents a change of direction for the German automaker as they seek to extend their reach beyond the luxury segment to compete more effectively in the rapidly developing EV market.
The new project is part of a larger plan to diversify the company’s electric vehicle offerings by making budget-conscious alternatives available alongside the high-tech, high-cost models in their Neue Klasse range. The BMW brand has for years been associated with luxury and performance; however, the arrival of mass-market EVs means BMW must adapt its strategy. With a more budget-friendly model to come in the Neue Klasse range, the company aims to attract an increased number of consumers that previously couldn’t afford the premium marque.
Word has it that this new model will utilize the full set of technologies from the platform; these will include the 800V architecture and next generation batteries, however a strong emphasis will be placed on lowering production costs so the car will be made more accessible to consumers. One notable advantage is the 800V system, which provides greatly improved charging speed over previous 400V systems; this feature appears too integral for the company to cut, even from their more affordable future vehicles, suggesting the company intends to offer an accessible vehicle without major compromise.
The next generation batteries are also integral to the appeal of the Neue Klasse platform. BMW is committed to providing a strong set of ranges and performance by producing high energy-density cells with extended lifespans and reduced production costs. The affordable Neue Klasse model is set to benefit from these features and will surely do the same in terms of sales performance.
BMW is committed to establishing its brand strongly within the electric vehicle market, where a growing number of increasingly sharp contenders-from the Chinese marques and Tesla- are looking to dominate. The range of incredibly fast electric cars produced at affordable price points by brands such as BYD, NIO, and other emerging companies are sure to be a driving force of the next few years of vehicle development and demand. Tesla continues to dominate sales in the premium and mid-range EV markets and BMW understands it needs to push ahead or be left behind.
The affordable Neue Klasse model will undoubtedly serve a purpose for the German brand to also fulfill impending EU emission regulations, and similar legislations in other key markets. The new model, by being more accessible, will also gain advantages from governmental incentives and subsidies for entry-level EVs.
Specific details are still yet to be released, however, the brand hopes the model will be an integral part of the larger expansion of the Neue Klasse platform over the coming years. Many industry analysts predict that the car will be unveiled in the next two years, with production likely commencing shortly after.
BMW’s decision to produce a more affordable Neue Klasse EV may well be the most important product it launches in a generation and, perhaps more significantly, will define if the luxury automaker can effectively transition to an electric future while retaining its commitment to engineering quality.
