Q&A: ‘There will still be a need for all powertrains’

BMW Group Asia Managing Director Lars Nielsen gives us the near-term plan

By Kap Maceda Aguila

THROUGH ITS M performance line, BMW has been transforming “regular cars” into racetrack-capable ones that are also appropriate for the everyday drive. That’s according to BMW Group Asia Managing Director Lars Nielsen — in town recently for the local launch of the M5 sedan and its station wagon or estate version, the M5 Touring.

The M with its myriad of values has been doing well, he averred. “We’re very happy with the results coming out in terms of sales… obviously, that’s the ultimate way to measure whether what we’re doing is right or wrong,” Mr. Nielsen told members of the media and content creators at the RSA Greenhills showroom in San Juan City. “The first six months of 2025 are the best six months that BMW M has ever had. In six months, we have delivered more than 100,000 BMW Ms all around the world. That’s growth of 6.5% versus last year.”

He acknowledged the good work that authorized BMW importer and seller SMC Asia Car Distributors Corp. has been doing as well. He said the company has been “closing in” on double-digit percentage share in terms of sales.

Here are excerpts from our exclusive interview with Mr. Nielsen:

VELOCITY: BMW in the Philippines previously introduced the plug-in hybrid versions of the X5 and X3. What are you seeing in the region in terms of receptiveness to PHEVs or behavior toward EVs?

LARS NIELSEN: Well, (there’s) a wide array, honestly, of both take-ups and take-up rates. Depending on which country, which market you’re in, the demand for full-electrics, for plug-in hybrids, or for combustion engines are all different. Obviously, it relates a lot to the legislation that is in place, if there are incentives in place, how the charging infrastructure looks like, etc. I think some of the key components that we are putting an emphasis on is, if there is a demand for it we would like to deliver.

BMW has not decided on a specific drivetrain technology. We say the whole world is a complex place. There will be a need for all drivetrain options as we go forward, (for) quite a while still. Therefore, we’re committed to being able to deliver this. What there is demand for, we will deliver. Maybe that’s what you are referring to. What you see now, the full electric format in the Philippines is taking a little bit of a step backward. Now, it’s the plug-in hybrids that are coming forward, because there was a change in regulations, right… then the demand changed in the market. We can fulfill that.

In Singapore, it’s the other way around… the demand is for full electric, because that’s the structure that is put in place. But while there’s a demand for full electric, there’s still slightly more demand for combustion engines; the balance in Singapore these days is a little more than 40% for full electrics and a little less than 60% for internal combustion engine units.

What about for countries outside of Singapore and the Philippines? What’s the skew like? In the Philippines, at least, we are seeing an uptick in the number of PHEV products. Brands are taking advantage of, as you said, legislation and government relief now expanded to other electrified options in order to make these vehicles more affordable, if you will.

So they say we’ve had a very good run with electric cars in Indonesia, for example, over the last few years. That’s been a path that we have pursued. Vietnam, meanwhile, actually has incentives in place for electric mobility. They are currently aiming for full electric vehicles. The take-up in the market though is not so big.

Again, (the appetite for electrified vehicles) really varies from market to market, from country to country. What is out there? Then sometimes government (policy) changes. We are going right, then we’re going left, then we’re going straight, and then we’re going backwards. It’s a little bit of a mix, which is why I think we’re very happy with the strategy we have here. We deliver a car and then there are multiple drivetrain options.

So there’s no shoe-horning of certain products into markets?

No, no, no. And I would underline it with the change that we have made here in the Philippines. When the plug-in hybrid regulation came into place last year, we said okay, all right, thank you.

So are we going to see more of these powertrains from BMW in the Philippines?

Yes, but I would correct your question, to make it more fitting to the purpose. Okay, we will introduce more new vehicles with multiple powertrain options. Again, the philosophy or the strategy of the BMW Group is not to let the powertrain be the decisive point. Yes, we think we make really cool cars, whatever the powertrain.

So if a customer goes into a BMW Philippines showroom, there will be various powertrain options? Is it about providing choices?

We would always be aiming for a logic that says, okay, if there are 1,000 customers then 999 are looking for a combustion engine, and one customer that looks for a full electric, then there will be a bit of economies of scale that we need to (take a look at) here as well. That in the end will need to go. But in general terms, the demand in the market is what we would be looking to satisfy.