As the world experiences accelerated change in technology and consumer preferences, the South African automotive industry has to embrace profound transformation to maintain its heritage of manufacturing excellence.

To this end, automaker BMW Group has significantly strengthened its expertise in electric drive technologies, including hydrogen fuel cell technology and has chosen an “open” approach to provide customers with a range of mobility solutions for the future.

The group’s drive train offerings span highly efficient internal combustion engine, plug-in hybrid (PHEV), battery-electric (BEV) and hydrogen vehicles.

BMW Group has at least one BEV or PHEV model available in all segments, with all-electric vehicles having accounted for 17.4% of the group’s sales globally in 2024.

By 2030, BMW Group expects BEVs to account for 50% of global vehicle sales and will be available for 100% of today’s market segments.

BMW South Africa, by extension, is able to manufacture different drive train types and model variants. The company has invested R16.7-billion in its Rosslyn plant since 1996, particularly R4.2-billion in 2023 to modify the plant for production of the X3 PHEV model.

BMW South Africa exclusively produces the X3 PHEV for the global market, exporting these vehicles and the petrol- and diesel-driven X3 models to about 40 countries.

BMW South Africa maintains a 41.2% market share in the premium segment of the automotive market in South Africa, as well as 44% market share in the motorcycles segment. Its Mini brand holds a 22% market share in the premium electric vehicle segment in South Africa.

Another notable achievement for BMW South Africa has been the growth of its IT business, which has grown to employ 2 500 “hubsters” who develop software for the global BMW Group. The software aids the group’s administrative processes, human resource functions, dealerships, front-end systems and more.

BMW Group’s financing business, in turn, has grown to finance 60% of the vehicles sold by the global group, offering customers bespoke payment, trade and return solutions, as well as insurance.

BMW South Africa financial services GM Pumeza Yako points out that the company’s “Select” product, in particular, allows for lower monthly payments by incorporating a guaranteed future value of the vehicle into the finance agreement.

Moreover, the company will introduce to the local market next year BMW Group’s Neue Klasse generation of models, which BMW South Africa CEO Peter van Binsbergen says takes e-mobility to a new dimension.

Neue Klasse not only offers premium electric efficiency with its range of 800 km and 400 kW charging, but also introduces a novel and immersive user experience with a new quality of human-car connection.

Van Binsbergen explains that this journey of transformation for BMW Group and BMW South Africa, as a next phase of premium e-mobility development, is not without complexities – from global supply chain dynamics to infrastructure advancements in South Africa.

“We see a purpose here. We are not just participating in this change, rather we want to be changemakers and architects of this future – from advanced electrification to digital customer journeys – BMW is charting a new territory,” he adds.

Commenting further on current market dynamics, Van Binsbergen says BMW Group is well positioned to weather supply chain disruptions, owing to the group’s 30 production sites spanning four continents, while BMW South Africa is not shy to compete with the increasing number of Chinese vehicles entering the local market.

Moreover, he expects the BMW hydrogen-driven X5 with a 500 km range – which is currently in testing phases – to have significant demand growth once the hydrogen economy in South Africa takes shape.

“We will not dictate to our customers to go 100% electrical. We offer a choice of drivetrains all backed by BMW Group’s strategy and ethos of premium driving excellence.”