BMW CEO warns against electric-only strategies, as California looks set to ban ICE from 2035

BMW Chief Executive Officer Oliver Zipse has issued a warning to manufacturers focusing on electric vehicles.

With well-known vehicle brands pledging to phase out internal-combustion engines, and some countries and regions placing outright bans, the shift to electric vehicles is rapidly speeding up.

Speaking with Reuters at the New York International Auto Show last week, Zipse highlighted the heightened reliance on selected countries with electric vehicles.

4

"When you look at the technology coming out, the EV push, we must be careful because at the same time, you increase dependency on very few countries.”

He also highlighted the supply of raw materials for electric vehicle batteries was largely controlled by China.

"If someone cannot buy an EV for some reason but needs a car, would you rather propose he continues to drive his old car forever? If you are not selling combustion engines anymore, someone else will.”

In addition, Zipse believes the evolution of electric vehicles in bringing prices down might not last, claiming manufacturers need to plan for higher energy and raw material costs in the future by focusing on efficient production and recycling initiatives.

4

"We have a peak now, they might not stay at the peak, but they will not go back to former prices," he added.

“How much energy you need and use, and circularity, is important – for environmental reasons but even more for economic reasons.”

The claims follow recent announcements from automotive marques and governments surrounding the future of internal-combustion vehicles.

4

Last week, California outlined its aggressive plan to ban internal-combustion vehicle sales by 2035.

The proposed rule, issued by the California Air Resources Board, would also see the state require at least 35 per cent of vehicle sales to be electric or hydrogen by 2026. The current figure for zero-emissions vehicles in California is 12.4 per cent, according to the board.

BMW Group sub-brands Mini, Rolls-Royce and BMW Motorrad will phase out internal-combustion engines by the early-2030s.

The main BMW brand will continue building internal-combustion and electrified vehicles – including mild, self-charging, plug-in hybrid and EV models – beyond the early-2030s deadline.