Starting with the "New Generation," how does BMW envision the future of mobility?

In 2023, BMW Group delivered 2,554,183 luxury vehicles worldwide, representing a year-on-year increase of 6.4%, with group revenue reaching €155.498 billion. In the Chinese market, BMW and MINI brands sold 824,932 vehicles, up 4.2% compared to the previous year. These figures demonstrate that, despite intense competition and a challenging, ever-changing market environment, BMW Group delivered impressive overall performance in 2023 and successfully achieved its financial targets for the fiscal year as planned.

Looking back at 2023, BMW and MINI all-electric vehicles were the key drivers behind the company’s business growth. In 2023, the BMW Group delivered more than 375,000 pure electric vehicles to customers worldwide, representing a year-on-year increase of 74.2% and helping the group achieve its target of having pure electric models account for approximately 15% of its total sales. Combined with the plug-in hybrid vehicles delivered throughout the year, the BMW Group sold over 560,000 new energy vehicles in 2023, marking a robust 30.5% rise compared to the previous year. Meanwhile, in China—the global leader in automotive electrification—BMW Group delivered around 100,000 BMW all-electric vehicles in 2023.
As a vision for the future of mobility, BMW’s new-generation models will mark a significant leap forward in both the brand and its product direction. According to plans, the BMW new-generation vehicles will debut in global markets in 2025, with at least six models entering production within the following 24 months. These next-generation vehicles will begin local production in China’s Shenyang in 2026. The new-generation models will feature three key characteristics: 1) a completely redesigned electrical and electronic architecture, along with a groundbreaking user interface and human-machine interaction concept; 2) a newly developed electric drive and battery system that delivers both superior performance and remarkable efficiency gains; and 3) a commitment to achieving unprecedented levels of circular sustainability throughout the entire product lifecycle.
BMW Group’s sustained, substantial investment in research and development is closely tied to the "BMW Neue Klasse" strategy—and its deep connection with the Chinese market. The company has maintained a research and development presence in China for nearly two decades, during which time it has established the largest and most comprehensive R&D network outside of Germany. Currently, BMW operates four major R&D and innovation centers located in Beijing, Shanghai, Shenyang, and Nanjing, each equipped with full-cycle automotive development capabilities as well as end-to-end software development expertise for intelligent, connected vehicles. In 2023, BMW further strengthened its global R&D infrastructure: In July, the Shanghai R&D Center underwent another significant upgrade; meanwhile, the second-phase expansion project at the Shenyang R&D Center was officially launched last year, bolstering BMW’s local capabilities in developing and validating next-generation electric vehicles. This state-of-the-art facility now features 19 new laboratories, 17 of which are dedicated specifically to testing cutting-edge EV technologies. Additionally, at the end of last year, BMW unveiled an upgraded EMC (Electromagnetic Compatibility) laboratory at the Shenyang R&D Center—a facility capable of conducting interference and immunity tests that meet aerospace-grade standards. These advanced tests ensure that BMW products in the digital age are equipped with an even more robust "immune system," ready to thrive in an increasingly interconnected world. Meanwhile, BMW continues to make strides in autonomous driving technology. In December 2023, BMW Group received approval from Shanghai authorities to test vehicles equipped with Level 3 automated driving capabilities on high-speed highways, marking another milestone in the company’s commitment to advancing self-driving solutions.
Over the past three years, BMW’s R&D team in China has tripled in size, now boasting more than 3,000 R&D and digital talent. The team is heavily focused on areas such as software development, autonomous driving, and UI/UX design. Currently, BMW’s Chinese R&D and design teams are deeply involved in many key aspects of the development for BMW’s next-generation models, ensuring that innovative achievements from the Chinese market will become standout features in these cutting-edge vehicles.

In 2023, BMW Group significantly increased its capital expenditures on factories, equipment, and fixed assets, reaching €8.836 billion—a year-on-year rise of 8.5%. These substantial investments were directed toward critical areas that will shape the company’s future, such as facilities and equipment for electrification and autonomous driving, battery production in multiple global markets, and the construction of BMW’s Debrecen plant in Hungary. Notably, investments in China also played a key role, primarily including BMW’s sixth-generation battery project and the ongoing upgrades and renovations of its existing production facilities in Shenyang. As part of BMW’s iFACTORY production strategy, the sixth-generation battery project boasts a total investment of RMB 10 billion, and its main building has now been completed. This new production facility will lay a solid foundation for rolling out BMW Group’s cutting-edge technologies in China, enabling low-carbon, highly efficient, and premium-quality battery production—and accelerating the localization of next-generation vehicle models.
In 2024, the production network related to the new-generation models will continue to expand, and the BMW Group’s R&D investments and capital expenditures in its automotive business will reach their peak. These R&D efforts will primarily focus on electrified vehicles—including the new-generation models—as well as digital innovations within the car, such as vehicle connectivity, software stacks, and automated driving technologies. Meanwhile, significant capital expenditures will be directed toward factories, product development, and cutting-edge technology initiatives.

Translated from Sina Auto

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