Why BMW's Successful EV Strategy May Threaten Jaguar's EV-Exclusive Plans

• As the rest of the automotive world committed wholeheartedly to electrification headlines, BMW followed a more conservative path.

• And now, in 2025, that choice is paying dividends—

• Bad news for brands like Jaguar, whose EV-exclusive shift appears increasingly fragile.

BMW Didn't Rush—It Adapted

BMW's approach wasn't to resist the EV shift—it was to meet it halfway. CEO Oliver Zipse led the company in fending off pressure to call the internal combustion engine dead. Instead, it doubled down on versatility.

This involved maintaining a robust offering of ICE vehicles, expanding its plug-in hybrid lineup, and launching EVs like the iX1, i4, i7, and now the eagerly awaited Neue Klasse platform.

The result? According to BMW CFO Walter Mertl, over half of the company’s 2024 sales growth came from electrified models. And yet, combustion engines still power profitable sales in markets where EV infrastructure is underdeveloped or consumer demand remains low.

BMW’s approach isn’t ideological—it’s surgical.

Rolls-Royce: Luxury Leadership by Example

One of the strongest examples of this strategy's success is Rolls-Royce. In BMW's ownership, the brand debuted its first EV, the Spectre, to robust demand—especially in China and the Middle East.

But importantly, Rolls-Royce hasn't ditched its V12s. Rather, it's offering customers the option of old-school opulence or new-age quiet. And in 2025, option is more valuable than dogma.

Jaguar's Gamble: EV-Only, Luxury-Only, High Stakes

Put that in perspective with Jaguar, which is aiming to become an all-electric brand by 2025 and transform itself as a luxury EV-only brand taking on Bentley and Rolls-Royce. It's a risky move—but one that appears to be increasingly exposed.

Why? For one thing, Jaguar will be counting on EV-committed countries such as China and California. But even in China—where EV appetite is strong—local brands such as BYD, NIO, and Li Auto have swamped the market with feature-laden, competitively priced offerings. Foreign incumbent brands are falling behind—not only on price, but on software, on innovation, and on speed.

Jaguar, on the other hand, enters this market with no EV sales foundation to leverage, no hybrid safety net, and no brand equity in the ultra-luxury EV space. The brand's ICE phase-out eliminates a profitable bridge to pay for its future, leaving it vulnerable if EV take-up flatlines or margins collapse—both scenarios already occurring across several markets.

Global Realities vs. Western Headlines

Jaguar's strategy may appeal in London or Los Angeles. But how about India, Brazil, South Africa, or Eastern Europe, where charging networks lag years behind and high-end EVs are too expensive for the majority of customers?

BMW, with its technology-agnostic approach, can catch customers wherever they stand on the curve of electrification. Jaguar, cornered into one drivetrain, threatens to curtail its access and applicability before its EV renaissance even has time to gain traction.

The Real Test: 2025 and Beyond

BMW's Neue Klasse will take its EV business to the next level—tech-savvy, scalable, and competitive. But even that, BMW won't abandon its multi-powertrain strategy. It's playing it safe, keeping its foot in every door that could conceivably open.

Jaguar, however, is running through one door and slamming all the others shut.

Will that bravery pay off—or prove to be a lesson?

Final Thoughts

BMW's reluctance to bet everything on EVs was once considered retrograde. Now, it appears the gold standard of responsiveness—profitable, scalable, and globally calibrated.

Jaguar's moonshot to all-electrics might capture headlines, but BMW's figures are capturing markets. In an era in which energy politics, consumer psychology, and infrastructure can change dramatically from one border to the next, the luxury of having choices may prove to be the ultimate luxury.

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