X5 – Arah.my

The X5 is one of BMW’s best-selling vehicles globally and will be offered with five drivetrain options including gasoline, diesel and fuel-cell technology

BMW AG is set to produce an electric version of its popular X5 sport-utility vehicle in the US, the German carmaker’s first EV produced in the country as competitors pull back from EVs due to weak demand.

The German luxury-car maker will kick off production of the revamped X5 later this year at its plant in Spartanburg, South Carolina, BMW said Tuesday. The site exports roughly half of its output of SUVs.

The X5 is one of BMW’s best-selling vehicles globally and will be offered with five drivetrain options including gasoline, diesel and fuel-cell technology. The electric X5, dubbed the iX5, will have a starting price of a little less than $70,000 and as much as 845 kilometers (525 miles) of driving range on a charge.

It’s one of at least six fully-electric models the company plans to make in the US by 2030, the company said. A hydrogen-powered version will be available at a later stage, BMW said. Demand for hydrogen-powered cars remains low in the US.

The decision to produce a range of drivetrain options reflects BMW’s flexible approach that has helped it avoid some of the pitfalls rivals have encountered as they cut back their ambitious EV plans. General Motors Co. and German luxury peer Mercedes-Benz Group AG are among the carmakers that have made major adjustments to battery model plans as buyers remain fickle.

EV demand in the US has been particularly challenged following a series of policy shifts that dramatically undercut federal support for battery-powered cars. The Trump administration has moved to ease fuel economy and emissions requirements, and Republican lawmakers last year eliminated a $7,500 federal tax credit for EV purchases. The incentive was key in driving consumer adoption.

EVs are now expected to account for 17% of US auto sales in 2030, according to BloombergNEF. That’s down from 27% that the researcher forecast last year and far below 2024’s projection of 48%.

For BMW, being able to swiftly react to shifts hasn’t saved it from facing challenges. The company earlier this month slashed its profit forecast for the year.

This followed a drop in demand in China, its most important market, where Western manufacturers are especially under pressure as local competitors like BYD Co. pull ahead. Global consumer spending has also taken a hit because of the war in the Middle East and rising inflation, BMW said.

The start of production of the latest X5 marks the completion of $1.7 billion in the US investment that started in 2022. Spartanburg is BMW’s biggest vehicle plant globally, and it has also built a nearby battery-assembly facility in Woodruff. The Spartanburg plant produces about 400,000 cars annually, helping to blunt some of the impact of tariffs imposed by the Trump administration. — Bloomberg