Neue Klasse will be as profitable as current electric cars, says BMW CEO

BMW has taken the wrap off its much-awaited Neue Klasse at the Munich Motor Show. The Vision Neue Klasse gives us a preview of what we can expect from the future BMW electric cars. The automaker's CEO Oliver Zipse said that the future BMW Neue Klasse EVs will be at least as profitable as the current crop of battery-powered cars.

The first car based on the Neue Klasse platform will be launched in 2025. BMW CEO said that it will be at the heart of the carmaker's efforts to replicate past successes and catch up with EV pioneer Tesla, which also made a comeback to the IAA this year.

Speaking about the automaker's EV strategy, Zipse said that BMW is very profitable with electric cars. The Neue Klasse or New Class would be very profitable as well. "We will definitely not be less profitable than today," he added. The German luxury auto manufacturer is aiming for a long-term profit margin between eight and 10 per cent. BMW CEO said that the company would exceed that range in some quarters.

BMW is currently working on the plan to roll out six electric cars by 2025 that will be based on the Neue Klasse. These upcoming electric cars will be positioned in various segments, ranging from sports SUVs to sedans. "What they all have in common is the pure electric heart that powers them," Zipse said while revealing the product strategy. Initially, these cars will be built in Germany only but later they will be manufactured in China and Mexico as well. Speaking further about the BMW Neue Klasse electric vehicle range, Zipse said that they will come with reduced battery costs, by up to 50 per cent. Also, these EVs will come promising 25 per cent more range per kilowatt hour.