adoption of electric vehicles and BMW’s approach
Once dominated by newcomers like Tesla, the electric vehicle (EV) market has become crucial for any automotive manufacturer seeking to stay relevant in 2024. This transition is especially clear in the tactics of the German luxury car manufacturer BMW, which has integrated EVs as a core element of its product offerings. The Bavarian Motor Works currently presents four electric models: the i4, i5, iX, and i7. These vehicles serve as electric alternatives to their conventional gasoline-powered models, showcasing BMW’s dedication to electrification.
According to BMW’s statistics, these four electric vehicles made up 15% of the company’s overall U.S. sales in the second quarter of 2024, with 14,081 units sold from a total of 91,237 vehicles. While these results are impressive, they underscore the competitive pressure posed by Tesla, which reported an incredible 422,405 deliveries of Model 3s and Model Ys during the same timeframe.
BMW has launched a creative initiative to motivate owners of traditional gasoline vehicles to transition to EVs. This plan features the recent update to the My BMW smartphone application, which now boasts a function called ‘Electric Vehicle Analysis.’ This addition aims to encourage owners of traditional BMWs to contemplate switching to an electric model by offering a thorough assessment of their driving patterns.
Owners have the option to choose a preferred electric model from BMW’s range, like the i4, i5, iX, or i7, for evaluation. For example, a driver of a BMW 5 Series sedan interested in the electric i5 can utilize the app to replicate their driving experience. Over at least 200 trips totaling 1,250 miles, the app gathers data from the gasoline vehicle and provides a simulation. This simulation reveals how many of those trips could have been completed with a single charge of the i5.
This feature is accessible to those who own a recent model-year BMW, permitting them to examine the feasibility of any of the four electric models. BMW intends to alleviate “range anxiety and questions regarding the everyday usability of all-electric vehicles,” which remain common among consumers today.
“Electric vehicles can already blend seamlessly into the daily habits of many customers–it’s just that most have not experienced it yet,” remarked Dirk Wiedmann, BMW Senior Vice President of Sales Steering and Strategy, Digitalisation. “Our app’s Electric Vehicle Analysis assists our customers in making an educated decision regarding their drive system preference.”
data privacy issues and collection practices
While BMW’s forward-thinking strategy to foster electric vehicle uptake is admirable, it introduces considerable privacy issues due to the extensive data gathering involved. The My BMW app, pivotal to this approach, collects a diverse array of information from users, encompassing detailed insights into their driving behavior and vehicle utilization. This data collection goes beyond basic statistics; it includes specific location data, images of the vehicle, environmental conditions, and information from sensors, forming a thorough depiction of the user’s driving experience.
BMW claims that this data is obtained with the user’s consent and is mainly utilized for research and development purposes. Nevertheless, the scope of data collection and the potential for sharing this information with third parties, such as dealerships and business partners, has raised concerns. The Mozilla Foundation’s Privacy Not Included evaluation emphasizes these worries, pointing out that the app’s data gathering practices are extensive and may infringe on user privacy.
Such practices are not exclusive to BMW. The entire automotive sector has come under scrutiny for data privacy matters, with numerous manufacturers being accused of collecting and monetizing customer information without sufficient transparency or consent. A significant instance is the lawsuit brought by Texas Attorney General Ken Paxton against General Motors, alleging deceptive actions regarding the collection and marketing of private driving data.
For consumers and businesses in Australia, these privacy issues hold particular importance as the country deals with its own data protection challenges. The growing incorporation of digital technologies in vehicles requires a careful balance between innovation and privacy. As manufacturers like BMW advance with digital strategies to encourage EV adoption, they must simultaneously respond to the rising demand for robust data protection measures to preserve consumer trust and comply with changing privacy regulations.
