KYMCO to Supply Alternator to BMW i3 Electric Citycar

New order enables KYMKO to upgrade technical level and corporate image

Kwang Yang Motor Co., Ltd. (KYMCO brand), a major powered two-wheeler (PTW) manufacturer in Taiwan, reportedly won an order from BMW for alternator systems for its new i3 luxury electric citycar, with an agreement signed between the two parties, according to foreign news wires. But KYMCO executives declined to comment on the order.

In Taiwan, KYMCO is a major PTW vendor, exports to a number of nations, and is known in many nations in Europe.

KYMCO's eye-catching product competitiveness and quality level has been winning increasing attention from global companies. From 2009, BMW Motorrad, the group's motorcycle business, began contracting the Taiwanese partner to produce the engines for BMW GS450X off-road bikes, and later began placing orders for a 650cc scooter engine.

To assure the technical and quality level, engineers and managers of BMW Motorrad have been staying in KYMCO's factory in Kaohsiung, southern Taiwan. Industry sources add that BMW Motorrad is also scheduled to launch a 400cc scooter in 2013 whose engine will likely be made by KYMCO.

The i3 electric citycar is part of BMW's "Project i" and is planned as the new brand, BMW i. The BMW i3 is expected to go into mass production in 2013 with deliveries in several world markets by that year end. The i3 concept car was unveiled at the 2011 Frankfurt Motor Show and BMW announced the electric car will have a "Rex" range extender option, making it also an extended range electric vehicle (EREV).

Industry sources comment that the BMW-KYMCO cooperation in EV products implies the closer partnership between the two players, with the i3 project to enable KYMCO to perhaps win more parts supply orders from BMW, which upgrade its technical level and corporate image.

Win-Win
The global PTW market has been sliding in recent years, especially in Europe, the most important PTW export market for Taiwanese manufacturers. In 2011 and 2012, Taiwan's PTW exports to the region dropped, an uncommon phenomenon. However, BMW's order brings hope for KYMCO, which has been aggressively diversifying product lines into vehicle powertrain systems for both internal combustion engine (ICE) and electric vehicles.

Though the profit margin to supply the alternators to BMW i3 is modest, the new order enables the Taiwanese PTW maker to upgrade its product level.

For BMW Motorrad, industry insiders say, it's not so easy to find a proper partner in Asia with similar concepts in quality and techniques, but finding one enables BMW to be more cost competitive.

According to some foreign industry analysts, BMW has a strong brand in both cars and motorcycles, but the two rarely meet. That could be about to change with reports that BMW's new i3 luxury electric citycar will get a range-extending engine borrowed from BMW Motorrad. So, they say, where else would be better to look for a powerful but compact engine than from BMW's own motorcycle range?

BMW i3
The i3 will be BMW's first zero-emissions mass produced vehicle due to its electric powertrain, and BMW also expects to be the first company to launch a volume production vehicle on the market featuring carbon-fiber reinforced plastic to improve the vehicle's energy consumption. Previously expected to be priced in the U.S. at around US$35,000, the BMW i3 will more likely be in the US$43,000 - US$50,000 range according to an unnamed source close to BMW.