German automaker BMW has reaffirmed its commitment to diesel engines in Australia until the end of the decade, signaling confidence in the enduring popularity of the technology despite the rising tide of electric cars.
In an interview with Drive at the launch of the electric iX2, Brendan Michel, BMW Australia’s head of product and market planning, emphasized the ongoing significance of diesel engines in the local market. Michel noted that diesel-powered variants of the X3, X5, X6, and X7 SUVs continue to be integral offerings for BMW, playing a substantial role in the brand’s volume, particularly in the X5, X6, and X7 models.
Despite the growing prominence of electric vehicles, Michel projected diesel engines to maintain their status as significant volume players for BMW in the foreseeable future, specifying that this forecast extends until the end of the current decade.
BMW’s stance on diesel engines contrasts with the strategies of many luxury car competitors, several of whom have moved away from diesel propulsion. Notably, Volvo ceased offering diesel variants in Australia four years ago, while the latest Mercedes-Benz GLC has transitioned to a petrol-only lineup.
Within BMW’s lineup, diesel engines are no longer available in sedan models such as the 3 Series, 5 Series, and 7 Series, as well as the X1 and X2 small SUVs. Currently, only four X SUV models – the X3, X5, X6, and X7 – offer diesel engine options.
However, looming emissions regulations in Australia, slated for implementation next year, are expected to exert pressure on car manufacturers to ensure compliance with stringent CO2 emissions limits. Drive estimates suggest significant fines for vehicles exceeding CO2 thresholds, with diesel variants such as the X5 xDrive 30d and X7 xDrive 40d facing substantial penalties.
Despite these challenges, BMW remains steadfast in its commitment to diesel engines, citing their enhanced capability and towing capacity as key advantages. Michel highlighted BMW’s efforts to integrate a 3.5-tonne towing package into its SUVs, catering to customers’ towing needs and reinforcing the appeal of diesel powertrains.
While BMW’s diesel lineup has undergone streamlining in recent years, with the discontinuation of certain engine options, the brand continues to emphasize the value proposition of diesel technology, particularly in markets like Australia where towing capabilities are highly valued.
In the broader context of automotive industry trends, BMW’s commitment to diesel engines positions the brand as one of the few global automakers still investing in high-displacement internal combustion engines alongside its expanding electric vehicle portfolio. As regulatory landscapes evolve, BMW’s approach underscores the complex interplay between traditional powertrains and emerging electric propulsion technologies, signaling a nuanced strategy to meet diverse market demands.
