For over a century, we have witnessed the automotive industry evolve to become the global multi trillion-dollar industry we know today – continually transforming the way we live and interact as a society.
This success was shaped by its ability to adapt during transitional periods, and yet again we find ourselves facing several challenges with pivotal opportunities tied to them. Hence, to positively emerge into the new era of automotive, I believe we must approach the future with a new set of priorities across multiple facets of our business.
Embracing the digital world
A deep digital transformation sits at the core of the ongoing automotive revolution. Having the latest digital services in our vehicles and showrooms is now an expectation. Today, we are faced with the important task of embracing technology throughout the entire value chain as we step towards the next era of automotive.
At BMW Group, for instance, a comprehensive digitalisation strategy is well underway. A good example is the application of blockchain as a technology that enables tamper-proof data sharing, adding more transparency throughout our supply chain. Formally known as “PartChain”, the project incorporates blockchain technology in our purchasing department to ensure the traceability of components and raw materials in multi-stage international supply chains.
BMW Group Middle East also utilised blockchain technology to launch a tailor-made NFT Collection for our customers. This award-winning campaign, formally known as “Museum of Sounds”, saw the launch of BMW’s very first NFTs Collection with the aim to immortalize the unique sounds of BMW M models. Using sophisticated recording equipment, 19 owners received a 1 of 1 NFT each, portraying the sound of their timeless cars racing around Dubai Autodrome Club Circuit.
The path towards sustainability is circular
We continue to see an increase of zero-emission vehicles on our roads, which is a great indication the industry is heading in the right direction. I would say societies played a vital role here, as it was their conscious decisions which helped drive the demand for environmentally friendly products.
However, to further build on this progress, I call on everyone to consider more than just the use-phase period of a product if we want to drastically reduce emissions. The complete value chain needs to be fundamentally reimagined to minimize lifetime carbon emissions and resource consumption.
At BMW Group, we are targeting a 50 percent reduction in global CO2 use-phase emissions by 2030 and 40 percent reduction in CO2 emissions during the entire life cycle of a vehicle. Rethinking how we source and use energy is crucial to achieve such ambitious targets. Since 2019, 100 percent of electricity used for BMW Group’s Plants worldwide has been from renewable energy sources.
This also includes a ground-breaking partnership with Emirates Global Aluminium (EGA), who provided us with aluminium using solar power. In 2021, 100 percent of solar aluminium produced by EGA was sourced exclusively to BMW Group.
Responsible action has always been fundamental to our success. When it comes to the environment, efforts to reduce our carbon footprint are not recent. In 1973, BMW was the first automotive company to appoint an environmental officer, a person who laid the foundations of preventive environmental protection.
Today, we are set on a clear path towards zero emissions by 2050 and are leading the automotive industry in the fight against climate change. Our thinking so far has always been linear. We harvest, use and dispose. In the future, we need to think circular. A circular economy can contribute to resolving the dilemma between consumption and the environment.
Alternative powertrains: One size does not fit all
While most developed markets are prepared to have battery electric vehicles on their roads, not every customer and market will be ready to fully adopt them. Knowing this, we view technological openness as a guiding principle to being prepared for the regulatory requirements and customer demand in different markets.
The new BMW 7 Series is a great representation of this. With the addition of the BMW i7, the BMW 7 Series is now the first fully-electric luxury sedan in our line-up available with either an internal combustion engine or as a plug-in hybrid. By offering parallel drivetrain technologies, we are creating a smooth transition to the future of mobility.
I also see a strong potential in hydrogen fuel cell technology, especially in the Middle East, as countries in the region potentially become major producers of clean hydrogen. I also see it becoming a pillar in BMW Group’s drive train portfolio in the long term, provided the framework conditions develop accordingly. The BMW iX5 Hydrogen gives us a glimpse of this technology, where there are no compromises on experience when choosing to drive an emission-free vehicle.
Assuming the hydrogen is produced using renewable energy and the necessary infrastructure is available, this technology could help meet the needs of customers who do not have their own access to electric charging infrastructure, frequently drive long distances and desire a high degree of flexibility.