Will the luxury car world be completely electric by 2030? The Porsche Taycan EV was a wild success in China and beyond while BMW and Mercedes-Benz have ambitious plans in the works

Mar 20 , 2022

The Porsche Taycan was China’s most popular luxury electric vehicle (EV) until it was dethroned by the HiPhi X in September 2021. Photo: Porsche

Land Rover, Jaguar, Maserati and Alfa Romeo aim to be all electric within the decade, but Ferrari and Lamborghini haven’t launched any EVs yet

In China, where luxury brands attract more millennial and Gen Z consumers, the domestically made HiPhi X dethroned the Porsche Taycan as the country’s most popular luxury EV in 2021

When the HiPhi X was released in September 2021, it zoomed past the Porsche Taycan to become China’s most popular luxury electric vehicle (EV) – making it the first domestic brand to produce the country’s bestselling EV priced over 500,000 yuan (US$78,700). Now anticipation is growing for the HiPhi Z, which was described as a “Digital GT” following its November unveil – and is expected to cost upwards of US$100,000 when it goes on sale later this year.

The way EVs are shaking up the top end of the car industry is not unique to China. “Luxury brands have really underestimated Tesla as a competitor, and indeed just two Tesla models outsold BMW’s entire line-up in the US in Q3 [2021],” says James Carter of Vision Mobility, a future transport consultancy.

The interior of the Mercedes-EQ, EQS. Photo: Handout

In terms of current ownership, a handful of German companies continue to dominate the luxury and premium segments of the global car industry. But change is coming.

Mercedes-Benz is arguably the most ambitious when it comes to plans for EVs, with a growing number in its all-electric EQ range and all new cars set to be electric only from 2025. Early models were electric versions of existing cars, but this year’s EQS saw the first use of a dedicated platform and completely new design.

Audi has taken a similar approach to Mercedes. Its Vorsprung 2030 initiative promises to see all combustion-engine models phased out by 2033, except – bizarrely – in China, and it has used “e-tron” badging since 2019 on both new EV models and electrified versions of existing models.

The final inspection on the e-tron line at Audi’s Brussels plant. Photo: Audi

BMW got off to an early start with its i-range – the i3 entered production in 2013 – but has failed to keep up the momentum. Although quite successful with plug-in hybrids, until this year’s launch of the i4 and iX, the company lagged with pure EVs and the Bavarian giant only aims for them to make up half of all sales by 2030.

“The established premium brands have been more cautious than some of the mass-market brands, but that has something to do with there not being many competitors outside of Tesla and Nio in their specific segment,” says Tu Le, managing director of innovation and management consultants Sino Auto Insights.

The BMW iX, a fully battery-electric crossover SUV that entered production in 2020. Photo: BMW