Huge investment needs in investments in electrification and autonomous driving, cooling global demand, plus the effects of trade disputes and Brexit: the challenges facing BMW, Daimler and VW are so numerous that 2020 has already been dubbed a "fateful year" for the German car groups.
Tougher EU pollution limits
Worse still, the EU's pollution limits are posing an even greater uncertainty for the sector. The average new car registered in the EU must not emit more than 95 grams of CO2 per kilometer, which corresponds to a fuel consumption of around 4.1 liters of petrol or 3.6 liters of diesel per 100 kilometers.
Electric cars could become a panacea for this problem. Projections for Europe indicate that automakers would need to sell up to 2.2 million electric vehicle (EV) units in 2021 alone to meet their fleet CO2 targets, said the business consultancy McKinsey.
Surge in e-car sales on the cards
According to McKinsey projections, "that would be a steep ramp-up of EV sales in fewer than two years and equivalent to global EV sales in 2018.” Analysts cautioned, however, this is “a big task not only for the automotive industry but also for the associated industries."
The carmakers also attempt to use the demand for SUVs to push electric mobility by offering electrified SUVs. Audi started selling the e-Tron in 2019 and Mercedes launched its EQC – both weighing around 2.5 tonnes when they are empty. BMW will sell an electric X3, also an SUV, in 2020.
VW to launch 1st fully electric model
Among the German carmakers, VW has made the most outstanding commitment to electric mobility. The world's largest carmaker pledged last year to transform itself from ‘dieselgate pariah’ into ‘e-mobility pioneer’, and has committed dozens of billions of Euros to the task.
In 2020, VW will launch the ID.3, its first fully electric model based on a new vehicle platform that forms the basis for its huge electric ambitions. Experts believe that VW's full entry into electric mobility could indeed turn out to be a game changer.