BMW of Germany is getting ready to manufacture electric vehicles by the end 2020 and will have 12 diverse types of vehicles by the end of 2025, it claimed last week, since the traditional producers race to catch up with Tesla, the U.S. electric car pioneer.
Car purchasers avoided electric cars due to their limited operating range and high cost until Tesla revealed in 2012 the Model S, a car that broke the range barrier of 200 Miles (322 Km) on a sole charge. Since then, huge improvements in battery tech and a worldwide concentrated effort on pollution in the wake of diesel scandal of Volkswagen have elevated stress on car producers to pace up growth of zero-emission choices.
BMW, which rolled out in 2013 the i3 electric car, claimed that it was now preparing its plants to mass produce electric vehicles by the end of 2020, if need for battery-powered cars takes off. “By the end of 2025, we will provide 25 electrified cars, 12 will be completely electric,” Harald Krueger, the Chief Executive of the company, told the reporters in Munich, adding that the electric vehicles might have a range of almost 435 Miles (700 Km).
It symbols a noteworthy foray by a huge producer into electrification. BMW, which comprises the Rolls-Royce and Mini brands and traded 2.34 Million cars in 2016, declared the decision on the same day when smaller competitor Jaguar claimed that it might provide hybrid or electric versions by 2020 of all its models. Last week, Nissan revealed a new variant of its Leaf electric car in its newest decision to overtake Tesla, the U.S. corporation that is co-founded by Elon Musk and traded 83,922 cars in 2016.
Traditional car producers have been sluggish to hold the market of electric vehicle since it stays unprofitable, mainly owing to the price of batteries that make up almost 30% to 50% of the price of an electric car. A battery pack paired with 500 Km range and 60 kWh capacity prices almost $14,000 these days, compared with a gasoline engine that has a price tag of almost $5,000. Add to that the $2,000 for the inverter and the electric motor, and the breach is even broader. But capacity spending into the battery segment might lower down prices of electric cars to a tipping point when they cross parity with combustion-engine correspondents sometime between the year 2020 and 2030, as per experts.