General Motors Company (GM), Ford Motor Company (F): The Worldwide Reveal of BMW’s i3 Could Equal Trouble for Competitors

There are a number of possible reasons. First, last October, Ford Motor Company (NYSE:F) released the C-Max Energi, which had a sales jump in November. And second, last September, General Motors Company (NYSE:GM) discounted Volt leases in an effort to regain market share — and that, right there, is a key factor. EVs are a niche market, and although sales of EVs continue to have a small and overall upward trajectory, they are by no means growing by leaps and bounds. That means each EV that enters the market is competing for a small percentage of overall sales. Consequently, the i3’s release is probably bad news for comparable EVs.

Further, the new i3 is a luxury-brand EV. The only other one is Tesla Motors Inc (NASDAQ:TSLA)‘ Model S. And while the i3’s standard configuration doesn’t get near the range of the Model S, with the add-on of the range extender, the range of the i3 hovers at around 200 miles. So, for buyers who want a luxury-brand EV but may not want to shell out the extra cash for the Model S, the i3 is a viable option. It’s too early to tell how this will play out, but considering EVs are still a niche market and it’s the first time the Model S has had company in the luxury EV market, it’s something to watch.

BMW enters the EV ring
So far, the i3 has received a great deal of praise. However, the i3, while being backed by BMW’s reputation, is still a new model. Consequently, it may have a few kinks that need to be worked out. But so far, the i3 looks promising. More pointedly, BMW is adding to the i3 launch with some interesting plays. First, it’s teaming up with U.K.-based EV charging-station provider Chargemaster, in a venture to build fast-charge ChargeNow stations across the U.K. for BMW’s new i-Series. True, these charging stations are only for the U.K., but considering the U.S is currently BMW’s largest market by sales, building quick-charge stations in the U.S. isn’t out of the question.

What’s more, later in 2014, BMW is releasing its i8 extended-range plug-in hybrid. Considering that the rumors regarding the look of the i3 were true, the reveal of the i8 is something car enthusiasts should keep a close eye on.

All of these moves added together show that BMW is going full-speed ahead into the EV market and, as such, is something investors should continue to monitor — especially for how this could affect comparable EVs.

The article The Worldwide Reveal of BMW’s i3 Could Equal Trouble for Competitors originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter: @TMFKSpence. The Motley Fool recommends Ford and Tesla Motors nd owns shares of Ford, General Electric, and Tesla.

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