BMW Group is accelerating its development cycles and embracing artificial intelligence to bolster its competitive edge, particularly in response to the escalating pressure from Chinese automotive rivals. According to Joachim Post, member of the Board of Management responsible for Development, BMW’s planned advancements over the next two years represent a significant leap forward and are difficult to replicate. He characterized the pace as surpassing even “China-speed.
This push is largely driven by the introduction of BMW’s “Neue Klasse” unveiled at the IAA Mobility event in Munich in early September. Built on a new electric platform, this initiative aims to introduce approximately 40 new models or updated existing models by 2027. These will incorporate advancements in battery technology, user interface design and manufacturing infrastructure. BMW has committed over ten billion euros in investment since 2021 to support these endeavors.
Post asserted that BMW’s process has become remarkably streamlined, comparing it to the efficient production of Bavarian pretzels – a local idiom signifying rapid and consistent output. The company is strategically ramping up the integration of artificial intelligence across its development processes to further accelerate innovation.
The German automotive industry is facing intensifying competitive pressures stemming from factors including evolving U.S. trade policies, the transition to electric vehicles and the substantial market share gains by Chinese manufacturers. BMW, along with competitors Mercedes-Benz and Audi, are experiencing a decline in market share within China. Recognizing the need to respond, Volkswagen and Audi are also working to increase their development velocities. BMW intends to reduce the average number of developers required for each new vehicle project from a previous high to approximately 1,000, a move designed to enhance efficiency and resource allocation.