BMW — Luxury Sells Well Down Under

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In 2024, Bayerische Motoren Werke AG (BMW) sold approximately 26,341 vehicles in Australia, a slight increase over 2023. In 2023, it sold 15% more than 2022. This is a story of growth. These numbers include petrol vehicles, diesel vehicles, PHEVs, and BEVs. Of these, 7,787 were full battery electric vehicles. BMW was the fourth best-selling EV brand behind Tesla, BYD, and MG. Over 30% of BMW sales in Australia are now BEVs. Wow!

I was encouraged to write this article when checking the sales data of various EVs. I discovered that BMW had sold about 2,500 iX1, over 2,000 i4, 1,100 iX2, 1,000 iX3, 556 iX5, 800 electric MINIs, 124 i5, and 36 i7. That adds up to the respectable total above. I have been biased against BMW because it appeared that the company had fumbled the ball after its ground-breaking car of the year, the i3. We drove the i3 before finally settling on the Tesla Model 3. The BMW was more expensive, had a lot less tech, and was not future proof. It did not get over-the-air updates. It was not built to be an autonomous vehicle — turns out, our 2019 Tesla Model 3 wasn’t either. You can read about my experience here, and here is the view of one of my correspondents.

And so, in my arrogance, I dismissed BMW. I was wrong (don’t tell the wife). Another jolt came when I read the European stats of BEV sales. Apparently, BMW plugins have been outselling Tesla in Europe! But what about globally? It is reported that BMW sales were 16.8% plugins in the first 9 months of 2024. BMW Group is expecting growth in several regions and is planning to have more than 15 BEV models in its lineup in the near future. BMW’s aim is to be at least 50% BEV by 2030. BMW is still doing well in China, manufacturing the BMW iX3 electric SUV and the MINI EV models at Chinese plants and exporting them to various countries. However, BMW is expecting some headwinds with the EU tariffs.

Swallowing my bias, I went to visit the local dealership. There, over a coffee and a biscuit, the Brisbane sales rep answered my many questions. Majella had a great time taking photos and exploring the luxury vehicles. On the way in, we had walked through a range of demonstrators and I was pleasantly surprised at their prices! BMW’s commitment to electric was obvious by the number of chargers lining the wall — and only one petrol bowser! Our visit was on Australia Day, a public holiday in Australia devoted to barbequing lamb, visiting the beach, and drinking lots of beer. Despite this, the dealership was busy with many staff and customers and we had to fit in between appointments.

Our sales rep had been at BMW for three years and had been well trained in the selling of electric vehicles. He has done online training and will soon complete his certification at a final in person course. He told me that the Australian federal government’s recent changes to Fringe Benefit Tax thresholds was helping more people get into an electric BMW. Leasing is a good option.

I asked about the level of customer knowledge and he told me that at least half had done extensive research and knew about BMW’s electric offerings. He said that his main job was to listen to customer needs and help them find the best fit. “What were they trading in?” I asked. He has seen Teslas, Mercedes, Audis, Volkswagens — a whole variety. Many customers have taken advantage of BMW’s full circle program and are rolling over their BMW leases to new cars.

The salesperson told me that he spends the time explaining to prospective customers the difference between an HEV, a PHEV, and a BEV. It’s back to the old question: “What drivetrain will best suit the customers’ needs?” He tries to avoid information overload for those new to EVs. “Perhaps the car industry has made the electric vehicle rollout too complicated,” he confides. “Aunt Cathy might just want a car to go to shops and get milk.”

What about price parity? He tells me that an eDrive 20 is priced at AU$90,000, whereas the roughly equivalent X1 18i petrol sells for about AU$72,000. So, we aren’t quite there yet.

BMW is using the nickel-manganese-cobalt (NMC) batteries in its EVs to give an expected range of 420 km. The cars come with two chargers, a granny charger, and a type 2 to type 2. To keep staff on their toes, BMW sends in mystery shoppers and each salesperson is given a score. BMW is rightly proud and protective of its brand and reputation.

BMW has a focus on sustainability. At the end of their usable life, BMW cars are used as raw materials for new cars. Recycled materials are included where possible. Real leather is only used in the top-of-the-range models. Other models only have leather on the steering wheel. “We are concentrating on raw materials that are procured in a responsible way, processed carbon-free or at least low in carbon and highly recyclable. In our search for innovative solutions, we adopt new perspectives and rethink conventional approaches.” BMW has a partnership with Redwood Materials to recycle batteries.

BMW provides over-the-air updates; but also expects you to bring the car in for servicing every 15,000 km or once a year. An EV service is about half the cost of an ICE service. Warranty? 5 years on the car, 8 years on the battery (160,000 km).

I have found it difficult to spot these BMW EVs on the road. Majella was able to point out the obvious as we walked through the various models — they have shiny solid fronts — no grille. She found the BMW iX1 very luxurious and comfortable to sit in. She appreciated the fact that there were fewer stalks and buttons than in the Renault. Like the Tesla, the BMW would be easy to clean.

Majella checked out the top selling iX1. It was great to have a screen behind the steering wheel showing the battery charge level (percentage and range), the speed, the time, and the temperature. On the screen to the left of the wheel — the home screen was easily navigable — the driver could choose between sport, personal, or efficient mode. The central console had push buttons, a roll wheel for volume, and a gear selection lever. “Still don’t understand why they have a button for start/stop.” BMW appears to be catching up with Tesla by providing amperage options for charging.

The 360-degree camera made for easy parking. Screen graphics were enticing and helpful as you set your preferred driving mode. For example, when the side screen was set for reversing and showed the 360-degree view, the front screen behind the steering wheel showed a graphic of proximity around the car.

 

Overall, for a BMW, Majella judged it as luxury value for money. Getting back into our Tesla felt like we were going down into a budget level of comfort. However, she did remind me that our car is five years old. Perhaps we will feel better when we check out the refreshed Model Y.