German premium carmaker BMW has said it's investing heavily in the development of new electric cars. Research and development spending on e-mobility was set to reach an all-time high this year, the company reported.
Munich based BMW said Wednesday it would raise research and development spending to an all-time high of €7 billion (8.6 billion) this year to bring 25 electrified models to market by 2025.
"Investment will rise by a further high three-digit-million-euro amount year on year, primarily from the ongoing new model initiative as well as continued work on e-mobility and autonomous driving," the carmaker said in a statement.
Spending on electric and autonomous cars already caused R&D costs to rise by €1 billion last year, reaching €6.1 billion.
SUVs in high demand
BMW's R&D ratio for 2018 is expected to be between 6.5 percent and 7 percent of sales.
The maker of BMW, Rolls-Royce and Mini vehicles said that despite higher spending it expected group pre-tax profit to come in at over €10 billion in 2018.
The auto manufacturer earlier this month reported a 5.3-percent rise in 2017 operating profit on surging demand for high-margin sports utility vehicles, helping to offset higher research spending.
hg/jd (Reuters, dpa)