BMW Strategically Realigns for a Future of Urban Mobility and E-Mobility

Demographics and eco-needs drive changes in motorcycle business

The BMW Group recently announced that it is realigning its BMW Motorrad business to tap the rising market for urban mobility and e-mobility. The company's new strategy for its motorcycle affiliate comes in response to changes in the motorcycle markets, demographic trends and increasing environmental demands

Under the new strategy, BMW Motorrad, Germany's largest motorcycle manufacturer, plans to expand its product offering. BMW Group will expand and utilize the resources of the BMW Motorrad, and focus energy by selling non-core businesses. For example, the Group has signed an agreement with Austria-based Pierer Industrie AG to sell BMW Motorrad's Husqvarna Motorcycles subsidiary, a major off-road bike brand in the international market. The transaction is subject to approval by anti-trust authorities, BMW Group said. Both companies have agreed to not disclose the purchase price.

Expanded Offering
BMW Motorrad posted a new sales record in 2012. With the realignment of its motorcycle business, the company aims to maintain profitable and sustainable growth over the coming years. Its current core business consists exclusively of premium vehicles in the categories "Tourer," "Enduro," "Sport," "Roadster," and "Maxi-Scooter" with engine displacements from 650 to 1600 cc.

BMW Motorrad entered the urban mobility segment for the first time in 2012 with the C 650 GT and C 600 Sport maxi-scooters. The next step in the expansion of the product line-up in this segment will be the series launch of the "C evolution" electric scooter in 2014. Further innovative vehicle concepts are also under consideration. Drive trains will include both environmentally-friendly combustion engines and pure electric drives. This move by BMW Motorrad reflects the BMW Group's overall focus on early identification of trends, such as megacities and traffic density, as well as environmental issues.

In addition to the expansion in the field of urban mobility, core segments from the 650 cc single-cylinder entry-level bike to the six-cylinder luxury tourer will also be selectively expanded, BMW Motorrad said.

Record 2012 Sales
In 2012, BMW Motorrad supplied 106,358 motorcycles and maxi scooters to its customers worldwide, up 2% from the previous year's 104,286 units and representing a new all-time sales high. In last December, deliveries increased by 43.4 % year-on-year (YoY) to 6,069 units.

The company's strongest single market in 2012 was Germany once again. A total of 20,516 vehicles were sold domestically, around one-fifth of the total. The second and third largest markets were the United States (12,100 units) and France (10,950 units), respectively. Italy was the fourth biggest market (10,200 units), slipping from the number two spot as the country struggled with a limping economy. Brazil moved up to fifth place with 7,442 units. BMW Motorrad says that four models are now produced for Brazil in response to the growing importance of this market.

BMW Motorrad also retained the market crown in the over 500 cc segments in Germany, Italy and Spain.

BMW Motorrad said that the big travel enduro R 1200 GS with air-cooled boxer engine was once again the most successful BMW motorcycle model, with 17,249 units shipped. The next most popular models were the F 800 GS (11,487 units) and the R 1200 GS Adventure (10,203 units), followed by the superbike S 1000 RR (8,970 units) and the touring classic R 1200 RT (7,909 units). The super touring bikes K 1600 GT and GTL were also high on the popularity scale, with 10,033 units sold.

Husqvarna Up 15.8 %
BMW's Husqvarna Motorcycles supplied 10,751 vehicles to its global dealer network in 2012, up 15.8% from 2011. Supplies in the month of December itself totaled 1,267 vehicles, down 4.7% YoY.

The most popular models in the single-cylinder sports segment (enduro, supermoto, and motocross) were the 250/310 cc (2,758 units) and the 449/511 cc (1,627 units).

In on-road motorcycle segment, the company shipped 1,936 Nuda 900 and Nuda 900R motorcycles and 1,321 TR 650 Terra and TR 650 Strada motorcycles.

"C evolution"
A number of trends are driving changes in the needs for individual mobility, particularly the rise of conurbations and the need for sustainability. Growing traffic volume, rising energy costs and constantly increasingly stringent CO2 restrictions on vehicles in inner cities - these are the challenges of the future, BMW Group says.

As an integral part of the BMW Group, BMW Motorrad is addressing issues of individual mobility and future customer needs and is developing appropriate solutions in response. In this connection, BMW Motorrad has expanded its business activities to embrace "urban mobility," presenting two serial production vehicles in this segment in 2011: the maxi scooters C 600 Sport and C 650 GT.

In line the BMW Group's sustainability strategy, BMW Motorrad aspires to consistently pursue e-mobility at this early stage, especially in the urban environment. As in BMW's automotive division, BMW Motorrad is accelerating development of visionary vehicle concepts and mobility services, as well as inspiring design and a new premium philosophy defined by sustainability across the entire value creation chain.

BMW Motorrad has presented a near-production prototype of an e-scooter expected to hit the market soon. Since it was conceived as a future-oriented vehicle for commuting between the urban periphery and the city center, there were two particular requirements for its development: performance figures comparable to those of a maxi scooter with a combustion engine and a long range for practicality.

With its deployment of five fully rideable "C evolution" scooters, BMW Motorrad has extended its experience in the field of e-mobility with single-track vehicles and continues to expand its expertise in this segment. BMW Motorrad is also making use of a number of events in Europe to further raise the profile and promote acceptance of single-track electrically powered vehicles ahead of a full production launch. In this pilot phase, the vehicles are being operated in real conditions and within areas reflecting their intended environment. BMW Motorrad also aims to explore the infrastructure, such as establishing a network of e-mobility providers that might include vehicle rental companies and car-sharing firms.

According to BMW Motorrad, key features of the "C evolution" e-scooter include:

• Innovative electric drive via drive-train swing arm with liquid-cooled alternator, tooth belt and planetary gear

• 11 kW continuous output (homologation according to ECE R85) and 35 kW peak output

• 120 km/h maximum speed

• High range of up to 100 kilometers due to large battery capacity

• High-voltage battery with high capacity (8 kWh) and innovative air cooling

• Intelligent recuperation in coasting mode and when braking

• Short charging times

• Synergy effects with BMW automobiles and electrical safety to car standards

• Hybrid chassis with agile handling due to low center of gravity

• Powerful braking system with ABS

• Lightweight tires

• Multifunctional TFT-LCD instrument cluster and LED daytime running light

With 11 kW continuous output and 35 kW peak output, the "C evolution" has a powerful motor and provides a high level of riding fun. The top speed is electronically limited to 120 km/h. The scooter expertly handles motorway riding and overtaking, even with a passenger. It is also capable of effortless hill starts on steep slopes with a rear-seat passenger. In terms of acceleration from 0 to 60 km/h, it comfortably holds its own against current maxi scooters a capacity of 600 cc or more.

Compared to conventional combustion engines, the electric drive of the "C evolution" also offers significant advantages at low speeds in particular. Thanks to elaborate power electronics settings, the alternator offers the rider an instant, spontaneous response. There are no delays in torque build-up at all as are typical in combustion engines due to the clutch engaging and disengaging, BMW Motorrad says.