Manual transmission is preferred by many BMW M customers
BMW Chief Financial Officer Walter Mertl announced a significant shift in the company's sales dynamics, saying that sales of cars with internal combustion engines have peaked. Mertle emphasized that electric vehicles now account for the majority of the brand's sales growth.
The plateau in sales of internal combustion engine vehicles is expected to continue and gradually decline. He attributed the trend to upcoming environmental regulations that will limit sales of traditional cars. As new regulations loom, automakers face increasing pressure to speed up the development and production of electric vehicles.
BMW, responding to these challenges, achieved a 15 percent share of all-electric car sales last year. The i4 M50 was BMW M's best-selling product for the second year in a row. The company is targeting a 33% share for electric vehicles by 2026, with plans to introduce six new models in the Neue Klasse EV lineup. The first vehicle to arrive in 2025 is expected to be an X3-sized electric SUV.
However, Mertle admitted that BMW's profits from sales of internal combustion engine models and all-electric cars will not match until at least 2026. He pointed to higher costs associated with introducing new battery technologies into subsequent models.
Despite the shift to electric vehicles, BMW still plans to sell cars with manual transmissions. The company has confirmed that the M2, M3 and M4 will continue to offer manual transmissions, at least for the current generation of cars. From 15 to 20% of M3 and M4 buyers choose the manual version, and for the M2 the percentage is even higher.