Many carmakers rushed to set cutoff dates for combustion engines, only to backtrack on their lofty electric goals just a few years later. But BMW didn’t break any promises for the simple reason that it never announced an end to gas-powered cars. On several occasions, CEO Oliver Zipse emphasized that the switch to electric shouldn’t be forced and that consumers should have the freedom to choose, citing high EV prices and an underdeveloped charging infrastructure.
In a new interview with the German business newspaper Automotive week (subscription required)a senior BMW official stated, “The combustion engine is our foundation and will also finance our future business.” Klaus von Moltke is the plant manager at BMW’s Steyr factory in Austria, where 1.2 million engines were built last year. He added that the development of conventional powertrains will continue. To secure the ICE’s future, engineers will make the three- to eight-cylinder engines compliant with upcoming Euro 7 regulations.
Photo by: BMW
While it might seem BMW is referring only to gasoline engines, diesel isn’t dead yet. Von Moltke stated that the company is testing various fuels compatible with internal combustion engines, including HVO100, for diesel-powered cars. The abbreviation stands for “hydrotreated vegetable oil,” and “100” indicates it’s a pure, unblended fuel. BMW is already filling up diesel cars made in Germany with HVO100 before shipping them to dealers.
The company claims CO₂ emissions are reduced by as much as 90% compared to conventional diesel. In addition to environmental benefits, diesel engines running on HVO100 are said to perform better during cold starts and are less prone to microbial contamination due to the fuel’s purity.
Beyond combustion engines, BMW’s Steyr factory in Upper Austria is also producing “electric engines” for future Neue Klasse EVs. Pre-production of sixth-generation electric motors began about a year ago for prototypes, ahead of the new iX3’s debut this September at the IAA Mobility show in Munich. Series production of the electric crossover will start late this year at BMW’s new Debrecen plant in Hungary.
Photo by: Alex Goy | Motor1
Although BMW remains committed to combustion engines for the long haul, it expects sales to be evenly split between ICE and EV models by the end of the decade. Reaching 50% in just five years is ambitious, given that EVs accounted for only 17.4% of total BMW Group sales (including Mini and Rolls-Royce) last year. In the first quarter of 2025, EVs made up nearly 19% of shipments, so the company must feel pretty confident it can reach parity by 2030.
Asked whether the European Union will follow through on its plan to ban sales of new combustion-engine cars by 2035, Klaus von Moltke replied: “It’s not our job to make such assumptions; that’s pointless. Our job is to consider all possible scenarios, prepare for each one, and ensure our delivery capability.”
BMW is keeping all options open and has not yet fully committed its resources to EVs. It remains invested in combustion engines and has already confirmed a new gasoline-powered M3 with an inline-six is in development, likely with some form of electrification. The larger M5 hasn’t lost any cylinders either, as its V-8 is now part of a plug-in hybrid setup to meet increasingly strict emissions standards.
