BMW exec spruiks hybrid tech as market resists fast BEV uptake

Although an earlier transition to BEVs would accelerate reductions in transport emissions, BMW head of portfolio management for electrified powertrains Michael Hoffmann considers hybrids a smart and scalable way to cut CO₂ in the short term as manufacturers face tightening regulations and uncertainty around charging infrastructure.

“If you glanced at September’s European Automobile Manufacturers Association registrations across Europe, you couldn’t have failed to notice that hybrid vehicles have surpassed traditional ICE vehicles in EU new-car registrations for the first time,” Mr Hoffmann said.

The milestone arrives as car-makers face aggressive targets requiring new passenger cars in Europe to emit less than 93.6 grams of CO₂ per kilometre by 2025, dropping to 49.5g/km by 2030.

Australia’s targets require each importer’s new passenger car sales to average less than 141 grams of CO₂ per kilometre in 2025, dropping to 58g/km by 2029, with more lenient averages for light commercial vehicles and off-road SUVs of 210g/km in 2025, tightening to 110g/km in 2029.

It is early days but combined sales of hybrid, plug-in hybrid and battery electric vehicle sales in Australia are close to catching up with diesel models in 2025, although petrol power continues to dominate.

According to Mr Hoffmann, hybrids offer a quicker and more practical route to compliance than relying solely on BEVs, especially given ongoing challenges around infrastructure and costs (be that up-front or depreciation).

“While many original equipment manufacturers are committed to electrification, it’s unsurprising that some are extending the life of ICE platforms,” Mr Hoffmann said, noting that flexible design and engineering is proving increasingly valuable.

By adapting BEV platforms with hybrid or plug-in hybrid technology, manufacturers can stay compliant with emissions rules, manage transition risks and maximise existing investments.

Converting to dedicated BEV platforms requires enormous capital investment, with many car-makers facing margin pressure as BEVs remain less profitable.

Industry estimates suggest car-makers may still be losing upwards of $9100 per BEV sold, even after government subsidies, due to high battery and materials costs.

Extending ICE platforms by adding electrification allows car-makers to spread costs more evenly without disrupting existing supply chains and manufacturing assets.

Hybrid technology has advanced significantly, with improvements in battery capacity and energy management alongside innovations in ICE efficiency including thermal efficiency, direct injection and turbocharging, making modern hybrids more capable and cleaner than ever.

“With so much investment committed to the EV platforms, OEMs want plug-and-play installs with ideally few or no body-in-white changes to power their hybrid strategies,” Mr Hoffmann explained.

Body-in-white refers to the car’s structural frame before paint, engine or interior components are added. 

Minimising changes at this stage helps save time and reduce costs when adapting existing platforms.

This approach proves especially effective when applied to plug-in hybrid electric vehicles (PHEV), increasingly viewed as practical bridge technology.

Under the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), some PHEVs can reduce CO₂ emissions by up to 70 per cent.

Depending on battery size, these vehicles can travel more than 100 kilometres on electric power alone – sufficient to cover most commutes.

“Suddenly, we have a practical pathway to getting a grip on lower emissions from passenger cars – and quickly,” Mr Hoffmann said.

Hybrid systems are becoming increasingly intelligent and responsive, designed to adapt more effectively to real-world driving conditions. Some models can automatically switch to electric-only driving in restricted areas such as London’s Ultra Low Emission Zone or France’s Crit’Air regions.

Beyond technology, strategic, regulatory and geopolitical pressures are affecting BEV rollout timelines. 

The shift to electrification brings complex technical demands including software development, supply chain restructuring and battery integration.

China’s dominance of the critical minerals supply chain and shortages of some minerals, combined with infrastructure delays and rising energy prices, have further slowed progress.

More than 150 rules and 30 directives in the EU require expensive and complicated car-maker compliance. 

Some exceptions have been extended, including a rule allowing certain business practices until 2028, but keeping up with changing new rules for emissions, in-car technology, data security and software remains demanding and costly.

In response, some car-makers are strengtheing ICE and hybrid offerings as a buffer against unpredictable market conditions.

Suppliers are playing key roles, an example being ZF’s 8HP transmission, in use since 2009 and originally designed with efficiency in mind.

Now in its fourth generation, it is compatible with everything from three-cylinder mild hybrids to V8 plug-in hybrids.

Crucially, it can be integrated without major changes to a vehicle’s body-in-white structure, making it an attractive option for manufacturers looking to electrify existing platforms with minimal re-engineering.

“Trusted transmission technologies offer a compelling solution for today’s challenges while laying the groundwork for a cleaner, more electrified future,” Mr Hoffmann said.