Another day, another article. Welcome back to The Strawman - today, we’re looking at why BMW is sticking with petrol and hybrids even as other automakers try to go all-in on electric.

The Rollercoaster Ride Ahead

BMW is playing it safe. While the auto world has been speeding toward electrification, the German car giant is doubling down on combustion engines and hybrids. The move comes as Donald Trump’s return to the White House threatens to slow the EV transition in the US.

“We think it would be naive to believe electrification is a one-way road,” said BMW board member Jochen Goller. Translation? EV demand might tank under new policies, so BMW is hedging its bets.

BMW’s multi-energy strategy has so far worked well. While Volkswagen and Mercedes-Benz have struggled with slowing EV sales, BMW’s “everything-for-everyone” approach (offering petrol, hybrid, and electric options with the same design) seems to be paying off. EV sales rose 13.5% last year, now accounting for 17% of total sales, while hybrids pushed that figure to 24%.

BMW’s US Advantage

In the US, BMW’s local production gives it a strategic edge. The company builds 65% of the cars it sells in the US locally, meaning it’s less exposed to Trump’s tariff wars compared to its rivals. It’s also better positioned to meet the EU’s tougher emissions targets without having to offer deep discounts on EVs, which have plagued competitors.

This year, BMW is set to launch its Neue Klasse EV platform, promising longer ranges, faster charging, and upgraded software—analysts believe it could consolidate BMW’s lead in software-defined vehicles and battery technology.

China: The Elephant in the Room

Not everything is smooth sailing. BMW’s sales in China—the world’s largest auto market—fell more than 13% last year, a sharper drop than rivals like Mercedes and Audi. The problem? China’s car market is overcrowded and ultra-competitive, with local brands offering tech-savvy cars at lower prices.

BMW isn’t panicking, but it knows it needs to adapt. Citigroup analysts are keeping a close eye on China, calling it BMW’s biggest vulnerability due to intensifying price wars and sliding sales. Still, the company remains optimistic that it can hold its ground in a “growing market”.

The Strawman’s Takeaway

BMW’s cautious strategy could pay off in a market as unpredictable as today’s. Petrol and hybrids aren’t going anywhere yet, and BMW’s diversified approach makes it less vulnerable to policy changes and market volatility.

The real test? Whether its Neue Klasse EVs can keep BMW competitive as the world’s biggest carmakers race for the electric future—or if the company’s careful balancing act leaves it stuck in neutral.