BMW i3 for sale, not lease

BMW Australia has confirmed its first electrified model, the i3 , will be sold only via traditional retail channels when first stocks arrive here in July next year.

Rather than offering a leasing option as the German brand does in Europe, BMW Australia says the i3 will be available for sale only through its dealer network, which has already attracted about 2000 expressions of interest for the ground-breaking car.

A number of repeat BMW customers have also asked to purchase the first Australian example of both the i3 hatchback and the i8 super-coupe, which will follow the i3 on sale here in late 2014.

Supplies of both models will be strictly limited in the first year of sales, although BMW AG is reportedly considering increasing production of the i3 in Germany following strong global demand.

BMW's Chief Financial Officer Friedrich Eichiner said at the start of the i3’s global launch in Amsterdam this week that more than 8000 orders have been received even before the car goes on sale in Germany on November 16.

Sales in the US, China, Japan and Australia will follow in the first half of next year, with strong sales expected in wealthy urban areas of California, Europe and Asia.

BMW forecast at least 10,000 i3 sales in the first year, but “will adjust capacity according to demand,” said Eichner. “If demand holds, which is what it's looking like, we will soon have to invest more.”

As we’ve reported, the i3 will be priced from around $70,000 in Australia – $10,000 more than Holden’s Volt plug-in hybrid (from $59,990) and at least double that of Nissan’s all-electric LEAF hatch ($39,990 drive-away). The i3 will cost 34,950 euros ($A49,650) in Germany and $41,350 ($A42,950) in the US.

In the UK, i3 pricing will start at £25,680 ($A43,100) outright, while customers will also have the option of signing up to a 36-month lease contract costing an initial £2995 ($A5000) followed by monthly payments of £369 ($A620). Britain’s i3 will be sold via a multi-channel model, comprising authorised BMW i partners, a Customer Interaction Center (CIC) and online sales.

Although it previously indicated it would not introduce the all-electric version of the i3, BMW Australia has confirmed it will offer both the i3 EV and the range-extending plug-in hybrid (PHEV) version, which adds a 25kW 650cc twin-cylinder petrol engine that boosts driving range by up to 300km.

BMW’s local CFO Peter Buchauer confirmed Australian i3 pricing structure would follow the lead of other markets, meaning the i3 PHEV will command a price premium of about 10 per cent over the EV, suggesting a pricetag of less than $80,000.

Final pricing will not be announced until closer to launch, and BMW dealers will soon commence workshop and sales training for the landmark model.

“We will be in line with other markets. The range-extender will carry a premium,” he offered, adding that the i3 will be available like other new models via BMW’s in-house finance arm, and that a mix of both private and fleet buyers were expected.

Australian-delivered BMW i3s will feature high specification levels, four interior trim combinations and six exterior colours.

Initially, BMW will appoint one dealer in each capital city, starting with Melbourne, Sydney, Brisbane and Perth in mid-2014 ahead of the car's sales debut. BMW plans to expand into Canberra and Adelaide at a later date.

The standard i3 is powered by a 125kW/250Nm electric motor that can drive the rear wheels for up to 160km on one battery charge. BMW’s first EV is claimed to hit 100km/h in 7.2 seconds, while the heavier (1315 v 1195kg) ‘Rex’ range-extender is slightly slower at 7.9 seconds.

Charging the battery via a standard domestic wall socket will take 11 hours, while an optional ‘iWallbox’ priced at about $1200 will allow owners to charge their vehicle within six hours.

Buchauer said the i3 will mark the beginning of a new era for BMW Australia in the second half of next year, when a host of BMW ConnectedDrive services will be rolled out.

Beyond the i3’s iOS and Android smartphone-based ConnectedDrive remote app – which allows owners to check on their vehicle's charging status, unlock the doors and turn on the air-con, among other functions – new ConnectedDrive features will include remote unlocking in the event of losing a key, for example, and a ‘concierge service’ that will offer a host of remote convenience features.

“BMW will celebrate its 100th anniversary in 2016,” said Buchauer. “BMW i will keep BMW relevant for the next 100 years and ConnectedDrive will be the other key future technology.”

While Australian customers will be able to purchase the i3 like other models through BMW’s Financial Services arm, BMW is also in discussions with groups including the Brisbane City Council and Queensland University to purchase a number of i3s and other BMW models in the first Australian example of BMW Financial Services’ fleet car sharing program, Alpha City.

However, BMW Australia has no plans to introduce the public version of Alpha City, the Drive Now car-sharing program run in Europe in partnership with car hire company Sixt.

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