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Buying battery outright key to stronger EV values

Date: 03 December 2013   |   Author: Jack Carfrae

Selling electric vehicles with batteries included in the purchase cost will lead to stronger residual values according to BMW.

The process necessitates a higher P11D value than the alternative of cheaper cars with leased batteries - a method employed by EV pioneer Renault - but the German manufacturer believes it is a more effective way of establishing the cars in the fleet market.

Mark Burton, product operations manager for small cars at BMW UK, said: "We've worked extensively with the residual value setters. Their advice was helpful; our preference was that we sell the cars outright with batteries and their views supported that.

"We're not shooting into the dark with what the corporate market is asking for. We wouldn't want to be pushing it to rep types, in the same way we wouldn't sell a Z4 to someone with kids.

"[Electric vehicle values are] a gradual thing. and we're willing to stand behind it from an RV perspective."

BMW also announced it is about to sign a contract with a UK-based green energy provider to supply clean energy to i3 operators, further details of which will be announced shortly.

In addition, BMW has developed an "online marketplace" for people renting a parking space with a charging point, which will initially offer users six months' worth of free advertising.

Away from the electric car arena, Burton said the next generation of BMWs would resemble the Concept Active Tourer, which was unveiled at the 2013 Frankfurt motor show.

"The Concept Active Tourer is a hint at what's coming in the compact segment. and [forthcoming cars] will include our new technology and engines.

"Prototypes with three-cylinder engines are just the tip of the iceberg. In the spirit of Efficient Dynamics we will be looking to improve both performance and efficiency so there will be no compromise."