In a world where automakers are racing toward an all-electric future—often only to slam the brakes when reality catches up—BMW is charting a different course. While rivals made bold proclamations about phasing out internal combustion engines, only to later scale back or delay their plans, BMW never pledged to quit gas or diesel. And that might be its smartest move yet.
BMW CEO Oliver Zipse has consistently voiced a pragmatic stance: the transition to electric should be driven by market readiness, not regulation. With electric vehicle (EV) prices still out of reach for many consumers and charging infrastructure lagging in several regions, BMW argues that customer choice should remain paramount.
That philosophy was echoed again in a recent Automobilwoche interview with Klaus von Moltke, plant manager at BMW’s Steyr engine factory in Austria—home to 1.2 million ICE units last year. “The combustion engine is our foundation and will also finance our future business,” von Moltke stated, reaffirming that BMW is far from done with traditional powertrains.
Future-Proofing the Internal Combustion Engine
Rather than winding down ICE development, BMW is doubling down. Engineers are actively updating their three- to eight-cylinder engines to comply with the stringent upcoming Euro 7 emissions regulations. This isn’t just about petrol either—diesel still has a place in the BMW lineup, albeit in a more sustainable form.
Enter HVO100: a renewable diesel fuel derived from hydrotreated vegetable oil. BMW is already using it to fill diesel models at German plants before export. With claims of up to 90% CO₂ reduction compared to standard diesel, plus better cold-start performance and resistance to microbial contamination, HVO100 could extend the relevance of diesel technology in an eco-conscious market.
One Foot in the Future
Despite its ICE commitments, BMW isn’t ignoring the electric revolution. The Steyr plant is now also assembling electric motors for the upcoming Neue Klasse lineup—a new generation of EVs spearheaded by the next iX3, set to debut this September at IAA Mobility in Munich. Series production of the EV will ramp up later this year at BMW’s cutting-edge factory in Debrecen, Hungary.
BMW aims for a 50/50 sales split between ICE and EV models by 2030. That may sound ambitious—especially considering that EVs accounted for just 17.4% of BMW Group deliveries (including Mini and Rolls-Royce) in 2024—but early 2025 numbers show that EVs have already climbed to 19% of sales, suggesting a steady, achievable trajectory.
Playing the Long Game
What about the EU’s proposed ban on new ICE vehicle sales by 2035? Von Moltke was diplomatic: “It’s not our job to make such assumptions; that’s pointless. Our job is to consider all possible scenarios, prepare for each one, and ensure our delivery capability.”
In other words, BMW isn’t gambling on one drivetrain. It’s hedging its bets—investing in combustion, hybrid, and electric technologies alike.
Take the performance division, for instance. BMW has confirmed a new gasoline-powered M3 with an inline-six engine is in development, likely with mild electrification. And the upcoming M5? It’s sticking with a V8, now enhanced with plug-in hybrid tech to meet emissions regulations without sacrificing power.
The Art of Automotive Agility
While others zig and zag through the volatile EV transition, BMW is playing the long game. By maintaining a flexible strategy that doesn’t alienate current ICE customers or ignore electric innovation, the Bavarian automaker might just be best positioned for whatever the road ahead holds.
In the race to the future, BMW isn’t rushing to the finish line—it’s building a lane of its own.
Source: Automobilwoche