Over the course of last months, BMW has reinforced its commitment for an electric future which will include 25 models by 2025. BMW’s partner in several ventures – Toyota – is also committed to produce several electric and plug-in hybrids in the next decade. The giant Japanese conglomerate is planning to sped a record 1 trillion yen (£6.7bn) on research and development this year and is slashing costs elsewhere to fund it.

But both companies are citing rising costs of developing these technologies.

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“We not only need to develop these leading technologies but also need to commercialize them,” said Osamu Nagata, the company’s finance director in Tokyo. “To do that, we need to increase R&D expenses. This will be a cost burden so we need to speed up cost reduction.”

Harald Krüger, chairman of the management board, said: “We are investing substantially in tomorrow’s mobility, enabling us to maintain our leading position of innovation and sustainable employment.” He said that BMW anticipated change in the car sector a “decade ago, far ahead of our competitors” and developed a strategy that means it will deliver more than 100,000 electrified vehicles this year.

BMW is also investing €400m to expand its Munich R&D centre and plans to expand the Dingolfing centre in Bavaria, which produces electric drive trains for the company’s cars.

He added that he wants BMW to “remain a dependable partner for society, policymakers and the environment” – a reference to the scrutiny Germany’s car industry faces following VW’s “dieselgate” scandal.

BMW said currency movements held back its performance, with revenue flat at €23.4bn (£20.6bn) and profits slipping 1.8pc to €1.8bn in the third quarter, because of higher expenses and R&D investments.

[Source: Telegraph]