BMW GROUP AND THE FUTURE OF SUSTAINABLE (E)-MOBILITY. LATIN AMERICA CLEAN TRANSPORT FORUM.
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1 Glenn Schmidt Vice President Government and External Affairs, Americas. September 2nd, BMW GROUP AND THE FUTURE OF SUSTAINABLE (E)-MOBILITY. LATIN AMERICA CLEAN TRANSPORT FORUM.
2 BMW GROUP. THREE STRONG PREMIUM BRANDS. Sheer driving pleasure. The world s most exciting premium small car brand. The pinnacle of automobile luxury. Page 2
3 ASSUMPTIONS ON THE INDIVIDUAL MOBILITY IN 2030: ELECTRIC, SAFE, CONVENIENT, CONNECTED. Cars will be powered by electric drives. Cars will drive almost accident-free by themselves. Utilization concepts like car-sharing will be available almost everywhere. The car will be part of the digital ecosystem. Cars will make a positive contribution to society. The share of individual premium mobility will rise. Page 3
4 TWO PARALLEL PATHS OF SUSTAINABLE INDIVIDUAL MOBILITY. EVOLUTION Efficient combustion engines Innovative technologies REVOLUTION Alternative drive trains Mobility services
5 NEW VEHICLE CONCEPTS: THE BMW i3 AND THE BMW i8 ARE THE FIRST TWO BOOKENDS OF THE BRAND BMW i. BMW i3 City Vehicle Battery Electric Vehicle (BEV) Optional: Range Extender Visionary Mobility. Inspiring Design. Next Premium. BMW i8 Sports car 2+(2) Seater Plug-In Hybrid Electric Vehicle Short distance drives Long distance drives
6 GLOBAL WARMING POTENTIAL IN THE PRODUCT LIFE CYCLE OF AN ELECTRIC VEHICLE IS SIGNIFICANTLY LOWER. Tons CO 2 emitted [t CO 2e ] BMW 118d BMW i3 EU Energy mix BMW i3 100 % Renewable Energy Production Suppliers Production BMW Group Usage (Well-to-Wheel) km Recycling
7 POTENTIAL ELECTRIC CAR CUSTOMERS HAVE QUESTIONS How can I charge the car? Who can install my wallbox? Is electric driving really emissionsfree? What if I do not have a private charging spot? Where is the next public charging facility? Can I reserve a charging station? I sometimes need a car for longdistance trips! What if I prefer the train instead of running into a traffic jam? What if I run out of power? Is my range sufficient to reach my destination? Will my battery stay healthy??
8 BMW i GIVES ANSWERS THROUGH ITS HOLISTIC APPROACH ELECTRIC. Will my battery stay healthy? HOME CHARGING What if I run out of power? CONVENIENT CHARGING AT HOME Is my range sufficient to reach my destination? BMW i WALLBOX E - INSTALLATION MY GREEN ENERGY Do I need a wallbox? PUBLIC CHARGING Who installs my wallbox? ON THE ROAD Is electric driving really emissions-free? RESERVATION, BOOKING & PAYMENT OF PUBLIC CHARGING STATIONS PARK & CHARGE OFFERS OVER NIGHT What If I do not have a private FLEXIBLE MOBILITY charging spot? A Where NEW MOBILE is the next LIFESTYLE public charging facility? ADD-ON MOBILITY Can I reserve a charging station? CARSHARING OFFERS E.G. DRIVENOW CONNECTED DRIVE INTERMODAL TRAVEL CONCEPTS What if I prefer the train instead of running into a traffic jam? PROVIDE ASSURANCE ASSISTANCE SERVICES I sometimes need a car for long-distance trips! CONNECTED DRIVE- E-NAVIGATION CONNECTED DRIVE- E-REMOTE APPS MOBILITY ASSISTANCE MAINTENANCE & REPAIR
9 BMW GROUP. DEFINING THE RIGHT FRAMEWORK CONDITIONS TO PROMOTE E-MOBILITY. Monetary Incentives Direct financial incentives for EV owners Purchase incentive for electric vehicles. Reduction / waiver of registration and/ or circulation tax. Reduction / waiver of consumption tax. Company car incentive. Subsidy for the installation of the wall-box. Non-Monetary Incentives Qualitative and indirect support for EV usage Framework Conditions Demonstration measures and charging network to support EVs Availability of public charging infrastructure. Awareness due to public demonstration and research projects. Public initiatives and cooperations supporting the uptake of Ev s. Public procurement programs for EV fleets. Tax bonus/purchase incentive Tax exemption (e.g. annual tax, registration) Free charging Tax advantages for company use / fleet Use of high occupancy lanes Usage of bus lanes Preferential inner city access Free inner city parking Free use of toll roads EV educational programs Demonstration programs Public charging access (e.g. 2.7 charging points per km 2 in Oslo) Charging initiatives Provision of charging spots
10 LEAD MARKETS FOR ELECTRIC VEHICLES. UC DAVIS SURVEY 10/2014. Source: UC Davis study, 10/2014
11 LEAD MARKETS EMERGE AS A RESULT OF FOCUSED INCENTIVES BOTH MONETARY AND NON-MONETARY. NORWAY No registration tax and VAT No toll and exclusive parking space Free charging, free usage of bus lanes and ferries UK 25% off the cost of a car, up to a maximum of 5,000 0% Benefit in kind for a company No road and company car tax 100% first year allowance for company purchase NETHERLANDS Acquisition- and automobile tax relief No income tax for private use of company cars Regional: privileged parking / lanes / charging FRANCE Max 6,300 bonus on purchase price (incl. battery costs if leasing model) USA Reduce of acquisition tax (max. $7,500) Additional promotion in some states Broad incentive program in California Page 11
12 DECISION FACTORS FOR ELECTRIC VEHICLE PURCHASE IN CALIFORNIA. TOP MOTIVATORS. <sadasdasdasdas Source: California Plug-in Electric Vehicle Driver Survey.
13 INTRODUCTION OF BMW i IN THE AMERICAS Brazil Canada Mexico USA 2015 Chile Colombia Planned 2016 Costa Rica Panama
14 EV INCENTIVES- SELECTED MARKETS IN LATIN AMERICA. Monetary and Tax Incentives BRAZIL CHILE COLOMBIA C. RICA MEXICO PANAMA NO NO NO LUXURY TAX (Below $50,000 FOB) Import Incentives NO NO YES NO IMPORT DUTIES YES 13% VAT YES NO IMPORT DUTIES YES Exempt: new vehicle & ownership tax NO NO YES NO IMPORT DUTIES Infrastructure Incentives NO NO NO NO NO NO Electricity Incentives NO NO NO NO Preferential TARIFF NO Vehicle use Limitations For Non Electric Vehicles YES YES YES YES YES NO
15 CHARGENOW STRATEGY. > CHARGEPOINTS IN 8 MARKETS. TOTAL STATIONS Charge now/ BMW partners CA 3, US CA CHI <15 3 US 14,407 9,716 MX PAN PAN 0 0 MX COR COL BR COR 0 0 BR CHI COL <5 2
16 BMW i PUBLIC CHARGING EXAMPLES IN BRAZIL. Page 16
17 BMW i - PUBLIC CHARGING EXAMPLES IN CHILE.
18 BMW i PUBLIC CHARGING EXAMPLES COLOMBIA.
19 BMW i PUBLIC CHARGING EXAMPLES IN MEXICO. BMW Public Charging : +40 Public Charging stations + 20 Dealer Charging Stations ChargeNow Network and Webpage POI Shopping centers Universities Street charging Commercial partners Government
20 IN MEXICO WE HAVE APPROACHED A WIDE RANGE OF STAKEHOLDERS TO NURTURE THE ECOSYSTEM REQUIRED FOR ELECTRIC VEHICLES. Charging partners Mobility Partners Industry Electric Sector Federal Government Local Authorities Page 20
21 POSSIBLE LIST OF EV INCENTIVE MEASURES IN MEXICO. Federal Local Private Sector New car tax VAT Accelerated depreciation Tax credits Government purchases Free toll roads Intercity Infrastructure Ownership tax Green plates/ev sticker Preferential parking Public chargers Free toll roads Free parking meters Charger installation tax Preferential parking Special electric tariffs Public charging stations Free toll roads Charging operation framework and suppliers Page 21
22 PRO-ACTIVE MEASURES ARE NECESSARY TO ACCELERATE E-MOBILITY ADOPTION. Create Awareness Find Infrastructure Partners Gain Political Support Initiate Projects Use Dealers Internal culture Present BMW i at events related to mobility, cars, renewable energy, universities, etc. to create buzz. Identify the companies, who excited about charging infrastructure and new mobility business models. Find and address political stakeholders who are in favor of electric vehicles e.g. central and local authorities. Initiate deployment of infrastructure by proposing projects and bringing parties together. Equip all relevant BMW dealerships with charging stations to create foundation for larger network. Create a committed and excited team within company to develop all necessary tasks prior to launch. Page 22
23 SUMMARY. Electric vehicles provide the most efficient form of individual urban mobility. Our customers want electric vehicles. Electrification already works well in today s cities. Electric vehicles are essential for reaching sustainability targets. Effective support for e-mobility both monetary and non-monetary makes a substantial impact during EV market ramp-up. BMW will continue to deliver on the brand promise of sheer driving pleasure. We will strengthen the dialogue with our stakeholders and business partners.
24 THANK YOU VERY MUCH.
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