BMW undertakes global launch of i3 EV

BMW, with great fanfare, yesterday (29 July) undertook the global launch of the production version of its i3 electric vehicle (EV) in three locations – London, the United Kingdom; New York, the United States; and Beijing, China). The automaker took the opportunity not only to release the official specifications of this long-awaited vehicle, but also to give some indication of how it hopes to attract customers.

BMW has decided with this new vehicle to push the boundaries in both engineering and design. The key feature of the i3 is its powertrain. Initially, the vehicle will be launched solely with a 125 kW (170 hp) hybrid synchronous electric motor with integrated power electronics, charger, and generator mode for recuperation producing 250 Nm. This is combined with a 360 volt, 22 kilowatt hour (kWh) lithium-ion cell to power the rear wheels. The automaker says this can achieve a range of 190 km on the EU cycle in Comfort mode, although it added that a normal range of 130–160 km is expected to be achieved, with up to 200 km to be available in the most efficient driving mode. The vehicle is also said to accelerate from 0 to 100 km/h in 7.2 seconds, before reaching a limited top speed of 150 km/h. However, at a later date, the vehicle will also be offered with an additional 25 kW (34 hp), 647 cc 2-cylinder gasoline (petrol) range-extending engine. With the addition of this feature, the 9-litre fuel tank gives a claimed range in Comfort mode of 240–300 km.

In order to achieve the highest range as possible from the vehicle, the 3999 mm-long, 1775 mm-wide, and 1578 mm-high four-seat, five-door vehicle uses light-weight carbon-fibre-reinforced-plastic (CFRP) and aluminium and magnesium alloys to keep the weight down to 1,195 kg as an EV and 1,315 kg with the range extender. The use of these materials has also seen the automaker's design remain largely true to the concept, with the lack of a B-pillar between the two suicide doors, whilst at the same time offering safety benefits. Fears over the cost of accident repairs have also been addressed, with minor bumps said to be absorbed or replacement plastic plating components available that may be screwed or clipped on. "Cold" repair methods may also be used for more serious impacts that damage the aluminium and CFRP components. Repair costs are, therefore, pegged at the same level as the automaker's 1 Series.

The first glimpse of the interior has also shown that BMW has tried to do away with convention by offering a minimalist dashboard with two screens to present key information, doing away with many buttons for the sake of its iDrive control function. Amongst the features included in this vehicle are the BMW ConnectedDrive system, which includes the Concierge Services function for information and the Intelligent Emergency Call function. There is also a remote application that links the driver to the vehicle via a smartphone when outside of the vehicle to help mobility in urban environments. Other features include satellite navigation and traffic jam assistance, as well as a parking assistance option.

BMW has also unveiled a new scheme to support the ownership of its new EV range. Called 360° Electric, the portfolio of services is said to comprise four main features: home charging, public charging stations, safeguarding mobility, and integration into innovative mobility concepts to overcome range restrictions. To support home charging, a far-ranging relationship with Schneider Electric and The Mobility House (TMH) will supply a charging point known as the "BMW i Wallbox". As well as monitoring the electrical installation, this supplies and assembles the charging point, as well as providing maintenance, advice, and other services. In some markets, there will also be the option to use electricity from renewable sources. In addition, BMW says that customers will have "highly reliable access to the public charging infrastructure" through the display of available charging stations, with payments made through its "ChargeNow" card. In order to provide additional mobility beyond that available with the i3, BMW will also be offering complementary mobility modules for longer distances, giving access to conventional engine and hybrid powertrain vehicles, as well as access to BMW's DriveNow car-sharing scheme.

As part of the promotional activities for the new vehicle, the automaker will reach out to potential customers through the i brand's website, as well as through social media enabling potential customers to register for test drives. Advertising will be undertaken on the internet through banner adverts, in print media, and through a television campaign closer to the date of the launch to the public. There will also be a BMW i application for several media devices, which will also support the brand. As well as select dealers, BMW will sell the vehicle over the internet and via sales consultants that will visit customers at home.

Outlook and implications

With the launch of this ambitious vehicle, BMW has sought to address many of the issues or concerns that customers may have over EVs, particularly with the wide range of support offerings laid out. BMW's member of the board of management responsible for sales and marketing, Ian Robertson, was quoted by Automotive News Europe (ANE) at the London launch as saying: "We're not entering to be a niche player... We're targeting meaningful sales." The vehicle's aggressive pricing will help matters, the automaker having already announced that pricing will begin at EUR34,950 (USD46,390) for the EV in Europe when it is launched in November, with the extender coming in at EUR39,950 further down the line. Pricing in the US, which BMW expects to be its largest market, will be broadly similar at USD41,350 for the EV, which is due to be introduced in the second quarter of 2014, and USD45,200 for the range extender. However, with local subsidies, this will fall even further, funding that will also support what look set to be especially competitive lease deals. Nevertheless, Robertson reiterated that despite the new vehicle's complexity and pricing, the i3 will be "profitable from day one on each vehicle" made. This will be helped by the newly developed manufacturing processes, including through the reduced number of parts required.

Although it comes as no surprise that this model is intended to be launched in mature markets such as Europe, North America, and Japan, the decision to also launch in China at around the same time as the United States, indicates the Asian country's importance in future mobility solutions, particularly given the growing congestion and emissions problems in many of its large cities.

While the growth in demand for EVs globally has been sluggish, BMW could be well placed to become a leader in this field. As well as competitive pricing, its innovative design, cutting-edge technology, and premium badging may well help it fare better. Indeed, BMW has noted that it has gained 92,000 expressions of interest. Although many of these will not translate into sales straightaway, its dealings with the brand and the technology could well plant a seed for conversion eventually. This has been something that BMW's chief executive officer, Norbert Reithofer, has noted, stating: "If you build such a car… you have to look into the future, 10, 15, 20 years… If you look around the world, [at] the emissions regulations, in the United States, in the European Union, even in China… cars like the BMW i3 are a must." Reithofer has added that in order to meet upcoming emissions levels, around 30% of the automaker's sales will need to comprise plug-in hybrid and EVs by 2025. This could include a full range of i branded models. As well as the upcoming i8 plug-in hybrid sports car, the automaker is said to have trademarked names i1 through to i9. However, Reithofer has cautioned: "We'll look now into the year 2014 and '15 and then we will make decisions."

IHS Automotive currently expects sales for the i3 to peak at around 20,000 units per annum. However, given the unexpectedly low pricing, this could well be pushed up in our next forecast round. We will also be looking closely at the market roll out, the model's acceptance, and the timing of any future i models.