BMW Boosts Hybrids to Challenge Lexus

Posted by Car Exist on Friday, November 11, 2011

Bayerische Motoren Werke AG (BMW), the world’s largest maker of luxury cars, is doubling its hybrid offerings with 340-horsepower semi-electric versions of its two best sellers, taking aim at Toyota Motor Corp. (7203)’s Lexus.

Lexus, which has led the way among luxury-car makers in introducing the technology, will offer five hybrid models.

About 13 percent of the brand’s U.S. sales this year have been hybrids, compared with less than 1 percent for BMW and Mercedes, according to data from auto website Edmunds.com.

The new offerings from BMW and Mercedes and the first hybrids from Audi may boost luxury hybrid sales, even as broader demand for hybrids remains tepid. Mild and full hybrids, which differ based on whether they can drive on electric power alone, are projected to nearly double their share of high-end car sales to 6.6 percent in 2015 from 3.4 percent this year, while the share of hybrid sales of the overall car market remains below 3 percent, according to LMC Automotive.

Audi will enter the hybrid segment this year with a version of the Q5 sport-utility vehicle that sells for 53,700 euros ($74,300), 9,800 euros more than a similarly equipped conventional version. Audi will add hybrid versions of the A6 and A8 sedans in the first half of 2012. Audi Plugs In

Mercedes, which sells a hybrid version of the flagship S- Class sedan, will be only the second carmaker after PSA Peugeot Citroen to combine a diesel engine with electric motors. The E300 hybrid will be powered by a four-cylinder engine and electric motor, focusing more an efficiency than performance like BMW and Audi.

“Customers are slowly developing a readiness to pay a certain extra for new sustainable driving technology,” said Thomas Weber, development chief at Mercedes, which plans to roll out hybrid versions for all its main model lines. BMW also plans to introduce hybrids in other model lines, Birkmann said.


The value of the additional cost of hybrids remains the key sticking point for the technology. Audi’s most efficient diesel Q5 gets about 41 miles per gallon, compared with 34 miles per gallon for the hybrid, even though it costs 18,850 euros less.

http://www.bloomberg.com

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