BMW will not start mass production of electric cars before 2020
According to a recently published Reuters report, German automaker BMW -- which sold more than 100,000 battery-electric and plug-in hybrid cars in 2017 -- does not plan to commence mass production of electric cars before 2020. At the moment, electric vehicles aren’t considered viable option for mass production as their cost of much higher compared to petrol or diesel cars.
This disclosure was made by BMW CEO Harald Krueger last week, during the course of a presentation to analysts in Munich.
With regard to BMW’s decision to mass-produce electric cars after 2020, Krueger said that the decision is linked to the potential availability of cheaper lithium-ion battery cells in the market. Krueger said that a new generation of battery cells will likely become available in the market, in volume, in around two years.
More specifically, Krueger told the analysts that the production of high-energy, ‘low profile’ cells will be commenced by Samsung in about 18 months. With the mentioned cells marking the fifth-generation of lithium-ion battery cells, Krueger said that the cost of those cells will be lower than the currently-available cells by “a two-digit number” in terms of percentage.
Going by Krueger’s explanation, the notable magnitude of cost reductions to be unfolded by fifth-generation lithium-ion battery cells will enable BMW to produce electric cars at competitive prices as compared to the cost of other electric cars, and even combustion-engine cars. Along with cost benefits, BMW’s electric cars equipped with cheaper, new-generation battery cells will boast a range of over 200 miles.
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