BMW is betting on software-driven electric vehicle technology, deploying a "super brain" system to challenge Chinese competitors and Tesla's market position.
According to reports on Wednesday, the German automaker has invested over 100 billion euros in developing its ambitious Neue Klasse platform, seeking to achieve technological breakthroughs amid intense competition facing traditional car manufacturers.
The new platform will deliver over 20 times the computing power of current vehicles and feature four "super brain" systems, significantly enhancing in-vehicle communication, infotainment displays, autonomous driving, and other vehicle functions. Analysts believe BMW's move amounts to "betting the entire company" on the success of Neue Klasse.
BMW's first iX3 SUV based on the Neue Klasse platform will make its debut on Friday ahead of the Munich Motor Show. Over the next two years, BMW will also launch 40 new and upgraded models, marking a fundamental transformation in how the German automaker designs, manufactures, and sells vehicles.
**Software-Defined Vehicles Become New Industry Standard**
BMW's iX3 will be among a series of "software-defined vehicles" displayed in Munich, where central computer systems will replace hardware as the most important feature. Traditional European, American, and Japanese automotive groups have long lagged behind Elon Musk's Tesla and the new generation of Chinese manufacturers in software development.
BMW unveiled the Neue Klasse platform concept in 2021 and has invested over 100 billion euros in developing the related technology. CEO Oliver Zipse told investors in July:
"With Neue Klasse, we have made tremendous progress in all relevant technology areas. The new BMW iX3 will become a benchmark for our industry."
The shift toward software-driven vehicles will enable automakers to continue improving performance after vehicles are sold and offer services they hope will create new revenue streams.
**Technological Breakthrough May Bring Performance Leap**
Neue Klasse technology will provide over 20 times the computing power of current vehicles while reducing the complexity of automotive electronic systems. Beyond longer electric range of up to 800 kilometers and faster charging speeds—drivers can add over 350 kilometers of range in 10 minutes—Neue Klasse vehicles will be powered by four "super brains."
Bernstein analyst Stephen Reitman stated:
"The new platform has the potential to bring a 'massive leap' for BMW. You could say BMW is betting the entire company on the success of Neue Klasse. The successful launch of this automotive platform could potentially 'change much of the automotive industry's future' and perceptions of Western automakers' ability to compete in software."
The new platform will also provide the foundation for BMW's future internal combustion engine and hybrid models. The German automaker, which also owns the Rolls-Royce and Mini brands, has long maintained a cautious attitude toward the global transition to electric vehicles, adopting a multi-energy approach.
**Cost Control Still Faces Challenges**
BMW's Vice President of Battery Cells and Cell Modules Martin Schuster told the Financial Times that the company can save up to 50% in manufacturing costs for its new generation of cylindrical lithium-ion batteries. While this may still not be sufficient to reduce electric vehicle costs to be as profitable as gasoline cars, Schuster said the latest battery system will allow the company to adopt new cell formats when deemed better.
Unlike competitors such as Volkswagen, BMW does not produce its own cells but conducts battery cell and chemistry research while collaborating with Chinese companies like CATL to develop new batteries. Currently, BMW's electric vehicle sales continue to grow, with battery-powered cars accounting for approximately 18% of its global deliveries in the first half of this year, compared to 8% for Mercedes and 11% for Volkswagen.