BMW executive Klaus Fröhlich says electric cars are a false demand

According to The Verge, BMW executive director and board member Klaus Fröhlich told reporters that the shift to electric-powered vehicles is "overhyped" and said there is "no" demand for these vehicles from consumers. Strangely, Fröhlich made these comments when BMW proudly announced that it would accelerate its plans to release 25 hybrid or pure electric vehicles. The company plans to reach its goal of selling 25 new energy vehicles by 2023, two years earlier than originally planned.

Fröhlich said that electric vehicles “cost more in terms of raw materials for the batteries than gasoline or hybrid vehicles,” adding that those prices “will likely eventually increase further” as demand for those raw materials increases. He also claimed that “regulators are demanding (electric vehicles), but customers are not demanding them.” Fröhlich said BMW could roll out a million electric vehicles in Europe if governments offered incentives, but claimed that “Europeans won’t buy these things.”

“From what we’ve seen, [pure electric vehicles] are suitable for the Chinese and Californian markets, and elsewhere [plug-in hybrids] have greater market potential,” Fröhlich said, adding that he expects diesel engines to “survive” for at least 20 years and gas engines for at least 30.

His comments came hours after BMW unveiled a new electric motorcycle design and a futuristic hybrid concept car that it hopes will eventually replace the company's i8 supercar. BMW also recently announced it had sold its 400,000th electric vehicle (which means hybrid and all-electric). The first all-electric BMW i3 went on sale in late 2013.

Fröhlich's comments about battery material shortages are not unfounded. VW is spending more than $50 billion now to ensure it has enough cells and battery materials for its big push into electric vehicles, in part because it doesn't want to be caught out later if supplies become too limited. Apple is even trying to do the same thing in response to any battery supply chain shortages. Audi, Hyundai and Kia have all had problems with their electric vehicle launches due to battery production issues, and some industry experts are warning of ongoing supply problems.

Despite a cooling global auto market, electric vehicle sales continue to grow, and have even increased in Europe, so Fröhlich's comments about demand for electric vehicles may not be accurate. With the emergence of low-cost electric vehicles from automakers such as Volkswagen, and better charging infrastructure being built every year, demand will likely only continue to increase. Of course, if demand continues to rise and the battery supply chain cannot support it, then there will be impacts.