BMW fuel cell SUV to enter mass production as soon as 2025

BMW will start mass-producing and selling fuel cell vehicles developed jointly with Toyota Motor as early as 2025, sales chief Pieter Nota told Nikkei, outlining the German automaker's push into greener cars amid increasingly strict environmental regulations in Europe.

BMW unveiled the fuel cell iX5 Hydrogen concept car at the International Motor Show Germany in September 2021. Small-scale production of the sport utility vehicle will begin before the end of 2022, the company had previously announced.

FCVs can be refueled in three to four minutes -- much faster than a battery electric vehicle. Though BMW has not revealed the iX5's range, the model is equipped with two roughly 6-kilogram tanks to allow for long-distance travel.

"We see that hydrogen fuel cell technology is particularly relevant for larger SUVs," Nota said.

The iX5 is based on BMW's X5 SUV. BMW and Toyota have also jointly developed sports cars since partnering in 2013, released as the BMW Z4 and the Toyota Supra in 2019.

"We have various projects we work on with Toyota," Nota said, hinting at further collaborations with the Japanese automaker.

BMW will also accelerate its shift toward electric vehicles. It currently aims for 50% of groupwide new sales -- also including the Mini and Rolls-Royce brands -- to be electrics by 2030. EVs have been making up a larger portion of sales than expected, and "maybe if the current speed stays, we can reach that 50% one or two years earlier," Nota said.

Gasoline engine vehicles, including hybrids, are still expected to constitute around half of the group sales in 2030. "We are also keeping up our investment on the combustion engine side," Nota said.

"We do believe in the importance of various technologies -- battery electric vehicles, also hydrogen and efficient combustion engines -- because we don't want to put all our investment in one area," he said.

A protracted parts shortage looms large over BMW's strategy. EVs require more chips than engine vehicles, and automakers across the board are under pressure to secure enough of a supply.

BMW is responding to the challenge by securing long-term contracts to source chips used by its parts suppliers. It signed a contract with Inova Semiconductors and GlobalFoundries in late 2021 for smart-LED chips.

BMW is believed to be guaranteed millions of units a year under the deal. BMW plans to expand this approach both in terms of total volume and in the variety of semiconductors.

Big auto suppliers like Bosch and Continental have traditionally held significant buying power in Europe. But given the global semiconductor shortage, automakers cannot secure enough chips by relying solely on these suppliers, Nota said, explaining BMW's push to expand its own supply chains.

Source: Asia Nikkei