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BMW is upbeat on its new electric car initiative which kicked off with the recent unveiling of the i3 and i8 concepts in Frankfurt. These cars are due to hit the market in 2013-14.
“Our first country for launch of these cars is Germany. We have the world in our minds which includes India as well, but this will only happen in the future,” Dr Norbert Reithofer, Chairman of the Board of Management, told Business Line .
As per the European Union's clean air norms, carmakers need to fulfil specific carbon emission targets. This will require use of plug-in hybrids and battery-electric vehicles.
“If we move to the US, we are more or less in the same situation. There will be regions where the BMW i3 is a zero emission vehicle and that would be good for us. This is how we plan distribution of these cars across the world,” Dr Reithofer said.
From BMW's point of view, the electric car project represents mobility of the future. Both the i3 and i8 will be produced in Leipzig, Germany, and will involve an initial investment of around 400 million euros. The company is also exploring the option of setting up a wind power station in the facility. The cars will be part of a new retail drive since they are targeted at specific customers.
City drive
The i3 concept, which can seat four people, is ideal for cities. It can touch a speed of 100 kmph in less than eight seconds. The i8, on the other hand, represents dynamic driving and is ‘the sports car of the new generation'. BMW will initially focus on major cities and, over time, the i-family will grow as it goes global.
“People will wonder why BMW is offering these cars under a sub-brand and why not under its own fold. This is because we want to enlarge the characteristics that people associate with BMW,” Dr Uwe Ellinghaus (Director Brand Steering, Brand Management BMW and Marketing Services), said in an exclusive interview.
As he put it, the i-cars represent a visionary form of mobility and are distinctly different from the existing BMW range.
Yet, there are common traits such as driving characteristics, elegant design and premium interiors which help marketing them under the BMW umbrella.
“I am convinced that BMWi will help BMW's brand image in terms of being even more innovative than it already is. BMWi will also benefit from the awareness that the mother brand has the world over,” Dr Ellinghaus said.
Brand strategy
The question he is often asked is if BMW is stretching its brand strategy a little too far. It already has the ‘M' high performance car and now the ‘i' has joined the kitty. “From my point of view, as long as we have the most efficient offers in the high performance segment and the most dynamic in the electric part of the car market, I do not worry about the brand,” Dr Ellinghaus said.
What goes in BMW's favour is that it does not need to tweak its brand to bridge cultural differences as its end-users across the world are pretty heterogeneous.
As a result, it reaches out to them with the same global product and communication.
There have been the occasional adjustments like the extended wheel bases for the 5-series in China but this is more the exception than the rule.
“Our target groups are cosmopolitan, well-travelled and educated. They want BMW to send the same message across the world,” Dr Ellinghaus said.
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