China a driver of BMW's innovation, e-mobility, says CEO

This photo taken on April 26, 2024 shows a BMW electric vehicle displayed at the signing ceremony for deepening strategic cooperation between BMW and Shenyang, in Shenyang, northeast China's Liaoning Province. (Xinhua/Pan Yulong)

BMW has established its largest research and development location outside Germany in China.

BERLIN, Dec. 27 (Xinhua) -- The top executive of German carmaker BMW has described China as its largest global market of "tremendous importance" and a leading hub for technology and innovation.

In a recent interview with Xinhua, BMW CEO Oliver Zipse highlighted China's role as a pioneer in technology adoption and innovation-driven purchasing decisions. "To understand what will drive the world tomorrow, you must anticipate what is happening in China," he said.

BMW has established its largest research and development location outside Germany in China. The company operates innovation bases in Beijing, Shanghai, Shenyang and Nanjing, focusing on vehicle development, digital services, software systems, and autonomous driving.

Zipse praised China's new energy vehicle (NEV) strategy, describing it as inclusive and pragmatic. Covering battery-electric, plug-in hybrid and fuel-cell electric vehicles, the strategy is "results-oriented and free from dogma," he said.

"This is the most promising and efficient way to ensure the market embraces e-mobility," Zipse added. He noted the alignment between China's approach and BMW's commitment to technological openness, which offers consumers a range of mobility solutions.

A BMW i5 electric car produced by BMW Brilliance Automotive (BBA) is displayed at an innovation achievements exhibition of the 2024 Global Industrial Internet Conference in Shenyang, northeast China's Liaoning Province, Sept. 12, 2024. (Xinhua/Zhang Lei)

China's NEV market has experienced rapid growth, with sales reaching 9.5 million units in 2023 and projected to hit 11.5 million this year, according to the China Association of Automobile Manufacturers.

BMW is actively contributing to this growth. In the first three quarters of the year, sales of its battery-electric vehicles in China increased by nearly 10 percent year-on-year.

In April, BMW announced an additional investment of 20 billion yuan (2.74 billion U.S. dollars) to upgrade its Shenyang production base, its largest outside Germany. The expansion targets NEV production.

"Our investments underscore our longstanding commitment to China and the potential we see here for the future," Zipse said. Production of BMW's next-generation electric models, the "Neue Klasse," is set to begin at the site in 2026.

Oliver Zipse, chairman of the Board of Management of BMW AG, speaks during an interview in Shenyang, northeast China's Liaoning Province, April 26, 2024. (Xinhua/Pan Yulong)

Marking BMW's 30th anniversary in China, Zipse reflected on the company's growing presence in the country with its Chinese partners such as CATL and Tsinghua University, as well as some 500 local suppliers. "We are at home in China," he said.

Zipse also voiced opposition to the European Union's decision to impose additional tariffs on Chinese EV imports. "Free trade has been -- and will always be -- our guiding principle," he stressed, warning that tariffs could disrupt global business models and constrain EV supply in Europe, ultimately hindering decarbonization efforts.

Instead, Zipse called for stronger partnerships between European and Chinese automotive firms. "Global challenges like climate change can only be tackled jointly. I see great potential in fostering such collaborations across borders and regions," he said. (1 yuan = 0.14 U.S. dollar)