Sunday, April 6, 2025

Focusing on electric cars makes us dependent on China, says BMW

BMW CEO Oliver Zipse has warned that the automotive industry is making itself dependent on China if car brands focus exclusively on electric cars.

BMW CEO Oliver Zipse warns that a one-sided focus on electric cars could lead to a dangerous dependence on China, which dominates the market for raw materials essential for the production of electric car batteries.

Zipse expressed his concern during the 2024 New York Auto Show, where he emphasized in a speech the importance of a balanced approach to car production.

"When you look at the technology that's coming out in the electric car wave, we have to be careful because at the same time you're increasing the dependence on very few countries," he said, according to the Economic Times .

The BMW boss has previously argued against a hasty ban on combustion engines. In February, he urged German politicians to gradually phase out these cars, saying an early ban would do more harm to the climate than good.

Zipse believes that it is crucial to focus on producing more fuel-efficient cars, as the current charging infrastructure and high prices of electric cars make it impossible for everyone to switch to electric cars in the near future.

– If someone for some reason can't buy an electric car but needs a car, would you rather suggest they keep driving their old car forever?

"If you don't sell combustion engines anymore, someone else will," Zipse said rhetorically.

The BMW boss's warning raises questions about the long-term strategy of the automotive industry. Is a one-sided focus on electric cars the right way to go, or should we focus on a more diversified approach?

Zipse believes that an overreliance on electric cars could have unintended consequences. He points out that it could lead to a situation where the West becomes dependent on China for the supply of critical raw materials.

This could have negative consequences for both the Western economy and security of supply. In a world of increasing geopolitical tensions, it is important to ensure a stable and reliable supply of raw materials.

The BMW boss's warning is a reminder that the transition to a more sustainable transport sector is a complex task. A balanced approach is needed that takes into account both environmental and economic factors.

A unilateral focus on electric cars may have unintended consequences, and it is important to ensure a diversified approach that ensures security of supply and avoids a dangerous dependence on China.

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