While the BMW Group continues to see growth in global electric vehicle (EV) sales, its South African EV sales remain subdued.
This is according to Peter van Binsbergen, CEO of BMW South Africa, speaking last week at a media engagement to detail the company’s strategic direction in the local market.
The German auto manufacturer has a family of electrified vehicles, with at least one battery electric vehicle or plug-in hybrid electric vehicle available across its range of BMW, MINI and Rolls-Royce models.
Van Binsbergen told local media that electrification is a strong part of the BMW Group, amid expectations that around 50% of all vehicle sales will be electric by 2030.
The company increased global sales of all-electric cars in 2024, up by 13.5%. He added that 17.4% of BMW Group’s total vehicle sales were of fully-electric vehicles, during the same period.
In the first three months of this year, the group reported that 109 516 (+32.4%) fully-electric BMW, MINI and Rolls-Royce vehicles were delivered to customers worldwide, led by the US and European markets.
Responding to an ITWeb question as to how the local market measures up, Van Binsbergen said growth in global EV sales was positive last year and in the first quarter of this year. In South Africa, there were fewer BMW EVs sold this year compared to last year, he stated.
He attributed this slump to the “missing” BMW iX3. The company has reportedly discontinued production of the BMW iX3 in preparation for its next EV model, the Neue Klasse, which will come out later this year. The vehicle is expected to be available in the South African market.
Van Binsbergen explained: “Last year, we had the iX3 on the old generation X3 platform. This year, we don’t have the iX3 because we’re waiting for the Neue Klasse to come. We’re missing our key volume model.
“When you consider the entire EV market in South Africa, I would say it is more or less similar to last year; it’s not really growing this year.”
In 2022, the group reported huge demand for electric vehicles, noting the BMW iX3 model as one of the sales drivers across the globe.
Van Binsbergen told media the automaker is moving forwards with its new electric flagship, the Neue Klasse, describing it as the next “big step” in the company’s e-mobility plans.
Neue Klasse is German for a “new class” of vehicles. It was initially unveiled as a concept car at the IAA Mobility 2023 motor show in Munich.
According to the group, the vehicle is the basis for a new generation of BMW electric vehicles, with the first production model, the iX3, expected to arrive in late 2025. It is also designed to accommodate hybrid and gasoline powertrains.
“This vehicle will set a new benchmark in electrification and digitisation for the BMW Group and that technology will cascade down into other products over time,” the CEO commented.
“It will be shown for the first time this year in September in a complete form at the IAA, and it will come to South Africa as a new offering in 2026.”
Van Binsbergen says the Neue Klasse will drive up BMW’s EV segment in the local market.
Keeping it local
According to the group, it has 30 production sites on four continents, with SA’s BMW Rosslyn plant marking the start of BMW South Africa 52 years ago.
Van Binsbergen explained that the Rosslyn plant has had three business phases, with around R17 billion in total investments over the course of its history. It is currently in phase three of the local operations.
The company made an investment of R6 billion as part of gearing up to produce the BMW X3 in 2018. A further investment of R4.2 billion was made in 2024, in preparation for the company’s BMW X3 as a plug-in hybrid to export to the world, he noted.
At the plant, BMW South Africa produced the BMW 3 Series, with nearly 1.2 million vehicles manufactured before switching to the BMW X3 in 2018, he stated.
“With the new X3, we entered the third phase, which is the phase of electrification. We brought the plug-in hybrid to the Rosslyn plant, which meant significant investment in the value chain to bring the components required to electrify the plant.
“It’s an important investment for [the plant’s] future because our export markets are moving towards new energy vehicles and is therefore important that our plant moves with our customers to produce electrified vehicles.”
BMW South Africa’s other business units include financial services and the BMW IT Hub, which is its technology solutions unit.
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