BMW’s Remarkable 2024 Sales Performance
In 2024, BMW’s electric vehicle (EV) segment had an impressive performance globally, particularly in the United States. The i4 model, in particular, almost made it to the top ten best-sellers list, delivering over 23,000 units and accounting for nearly half of all BMW’s EV sales in the U.S. market. This achievement highlights BMW’s commitment to expanding its electric lineup and cater to the burgeoning demand for sustainable transportation.
Challenges Arising from New Tariffs
Despite this success, BMW may find it challenging to replicate that performance in the coming year. Newly imposed, significant import tariffs are expected to drive up prices for its electric vehicles. According to an automotive news report referencing a memo to BMW’s U.S. dealers, the automaker plans to “postpone” the production of certain electric vehicle models next month. While the specific models were not disclosed, the decision points to a broader strategy to navigate an increasingly expensive market environment.
Strategic Adaptations in the EV Market
Sam Fiorani, vice president of AutoForecast Solutions, addressed the saturation of the EV market and the difficulties of launching pricier models in such a competitive landscape. Currently, BMW’s U.S. electric vehicle lineup includes the i4, i5, i7, and ix. All of these models are imported from Europe, which increases their vulnerability to tariff-induced price hikes. As BMW adjusts its strategy, one potential solution could involve localized parts production or establishing manufacturing facilities within the U.S., through its planned new class of EVs. Nevertheless, each option presents challenges requiring careful consideration from the company.
