Volkswagen and BMW are determined to keep pace with Tesla. Here's how

Volkswagen and BMW aim to keep pace with Tesla in the global electric car arena, as the global mobility industry is fast transitioning towards zero-emission mobility. While Volkswagen has announced that it would spend a whopping $191 billion over five years for EV transformation, BMW, on the other hand, has allocated a record $8.3 billion, which is 5.5 per cent of its revenue for electric vehicles.

This comes at a time when both German auto manufacturers are trying to keep pace with Tesla, the global leader in the electric car segment. Despite being one of the frontrunners, BMW never capitalised on its headstart with the i3 in 2013. It preferred to focus on hybrid technology rather than developing a family of EVs. BMW expects more than 50 per cent of its new car sales to come from EVs, well ahead of its internal 2030 target and is spending big to make that happen. BMW is also keeping multiple options open, backing e-fuels to extend the life of internal combustion engines and developing hydrogen cars.

Volkswagen also had a headstart in the EV segment with the e-Golf in 2014, but until dieselgate happened, it was not serious about electric mobility. However, with the global mobility industry transitioning rapidly towards zero-emission technology, both the German auto majors are vowing to grab a large chunk of the market, where Tesla holds the lion's share. Keeping a focus on hat strategy, both automakers are funnelling billions of dollars into their respective EV projects.

Both Volkswagen and BMW hope that a large chunk of investments will be enough to keep pace with Tesla. However, none of these two car brands is in a position to threaten Tesla in the near future, as the latter is far ahead in the race with the sales volume and technology rollout.