BMW Group takes the EV competition seriously as the company unveiled an electric motorcycle concept and its Vision M Next electric car concept this week. This is the company’s strategy to tackle Tesla (NASDAQ: TSLA) Model 3 and Volkswagen I.D. Concept on the battlefield. Building motorcycle has turned out to be history for BMW, which planned to bring out an electric motorcycle.
The company showcased its newest electric concept bike, the BMW Motorrad Vision DC Roadster. Meanwhile, consumers will be looking out for something special in the concept bike that could retain the brand image associated with BMW motorcycles apart from just performance.
Already Harley-Davidson (NYSE: HOG), which had dominated the industry in the US with a market share of nearly 47%, has taken a leap out in bringing an electric motorcycle. However, Zero Motorcycles, which has been selling diversified electric motorcycles since 2006, still rules the market.
According to a research report from P&S Intelligence, North American electric scooters and motorcycles market is likely to reach $675.7 million by 2024 with a compound annual growth rate (CAGR) of 28.4%. The growth is driven by the emergence of electric scooter sharing fleet, government policies and incentives, development in battery technology, and low maintenance cost.
Also read: Electric motorcycles: A ride for Tesla to profitability
Also, BMW premiered the Vision M Next electric car concept with five key points including design and autonomous driving, connectivity, electrification, and services. The car will be equipped with four-cylinder gasoline-electric hybrid powertrain producing a total output of 600 horsepower or 441 kilowatts and has a top speed of 186 miles per hour along with a “Boost+” function for extra energy.
In 2018, the BMW Group sold over 2.49 million passenger vehicles and more than 165,000 motorcycles worldwide. The profit before tax in 2018 was EUR9,815 billion on revenues amounting to EUR97,480 billion. The BMW Group production network comprises 31 production and assembly facilities in 15 countries.
According to the Allied Market Research, the global electric vehicle market was valued at $118.87 billion in 2017 and is expected to reach $567.3 billion by 2025, growing at a CAGR of 22.3% from 2018 to 2025. The demand for electric vehicles is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles.