BMW Mulls Adding Range-Extending Engines to EV Models in China

(Bloomberg) -- BMW AG is weighing the addition of range extenders to some of its vehicles amid growing demand for the technology popularized by its Chinese rivals, according to people familiar with the company’s strategy.

The company may make range-extender versions of top-end models such as the X5 SUV and 7-Series sedan as they’re large enough to incorporate a small engine, the people said, asking not to be identified as the deliberations are private. BMW may become the first German automaker to offer the technology that’s not yet widely available in Europe.

BMW and its German peers are trying to revive sales in China after losing market share to local manufacturers led by BYD Co. Range extenders have become popular in the world’s biggest car market and are also being rolled out in the US, where customers favor large SUVs and frequently take long trips. BMW’s long-wheelbase variants sold in the US and China would be expecially well-suited for the technology, the people said.

Range-extender cars come with a small gasoline engine that doesn’t drive the wheels like in a conventional hybrid, and instead acts as an on-board generator to recharge the battery. BMW already makes some components needed in-house, including efficient small engines as well as gearboxes, which would reduce the cost of introducing the technology, the people said.

BMW is “continuously analyzing usage patterns, customer needs and market developments and reviewing the market potential of various technologies,” the company said in a statement, declining to be more specific.

In China, range extenders are increasingly popular, especially in the SUV segments of the market where the Germans compete. Local models include BYD’s Yangwang U8, Aito’s M9 and Li Auto’s L9.

BMW is not alone in pursuing the technology. Stellantis NV is preparing a range-extended Ramcharger pickup truck for the US market, while Volkswagen AG’s Scout plans to offer rugged range-extended SUVs there in the coming years. In the European Union, Renault SA is including the technology in its investment deliberations as the French automaker prepares its next business plan, according to Chief Executive Officer Francois Provost.

“For middle to bigger sized cars it makes no sense to force all-electric models,” Provost said in an interview. “We need to think about clients, and range extenders are a good solution.”

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