BMW to launch five drivetrain option while EV interest cools
As both American and European automakers have stepped back from a focus on producing electric vehicles, BMW says it will manufacture a vehicle with five different drivetrain technologies.
The new BMW X5 will be the first model to offer customers a choice of battery electric, plug-in hybrid, gasoline, diesel (in markets outside the U.S.), and hydrogen fuel cell technology, according to a press release from BMW.
“By launching the new BMW X5 with a choice of five drivetrain variants, we are once again demonstrating our leading position as a technology pioneer,” said Joachim Post, BMW AG Board of Management member, development, at a BMW event in New York. “Hydrogen has an essential part to play in global decarbonization, which is why we are committed to driving the technology forward.”
BMW says its Hydrogen Mobility at Scale (HyMoS) initiative is designed to promote the development of hydrogen ecosystems and refueling stations in metropolitan areas. Pilot implementation, with the support of existing ecosystems in Germany and France, is underway to gather information for potential expansion to other countries.
Following successful testing of the pilot fleet worldwide, the new BMW iX5 Hydrogen is slated to enter the market in 2028 as the brand’s first-ever series-produced hydrogen-powered model.
The drive technology is based on the third-generation fuel cell system that BMW is developing in collaboration with Toyota Motor Corp.
“Hydrogen is recognized as a promising future energy source for global decarbonization,” the release states. “It acts as an effective storage medium for renewable energy sources, helping to balance supply and demand and enabling a more stable and reliable integration of renewables into the energy grid. Hydrogen is the missing piece for completing the electric mobility puzzle, where battery electric vehicles are not the optimal solution.”
Porsche, VW, Stellantis back off on EVs
Politico reports that European automakers with a strong U.S. presence are backing off on battery-only EV offerings, as the Trump administration ends subsidies and regulations that support EVs.
The most recent is Porsche, which recently said it would “pivot partly back” to producing gasoline-powered and hybrid vehicles, according to the article.
“That cost its parent company Volkswagen Group $6 billion and caused shares in both companies to drop,” the article says. “EV sales in the U.S. are still growing, but at tepid rates. Republicans this summer killed the $7,500 EV tax credit created by the Biden administration in the 2021 Inflation Reduction Act… The Republican megalaw also effectively ended an emissions-trading regulation that made it more expensive for carmakers to offer high-emitting cars… Lower-than-expected American EV sales, President Donald Trump’s tariffs, and bungled vehicle rollouts have caused Europe’s automakers to have a lower EV profile in the U.S. than they had planned.”
The article notes that three years ago, Stellantis planned to go all-electric in Europe by 2030, aiming for half of its U.S. sales to meet the same mark; now, it’s focusing more on gasoline and hybrid models. Earlier this month, it abandoned the European goal, according to Automotive News.
As of Q2 2025, there were 6.5 million EVs on U.S. roads, or 2.25% of vehicles in operation, according to the Alliance for Automotive Innovation’s “Get Connected Electric Vehicle Report Q2 2025.”
The report notes that federal EV policies have shifted since 2024, including the elimination of consumer EV tax credits after Sept. 30, 2025. The report is based on data trends that occurred just before the tax incentive elimination was signed into law at the beginning of Q3.
“Since then, national sales data have shown a noticeable uptick as consumers rush to purchase EVs while the credit is still available,” the report states. “Nevertheless, EVs remain an important part of the U.S. market, both in response to consumer demand and in the larger picture of U.S. global competitiveness.”
Images
Featured image: Testing of the new BMW iX5 Hydrogen prototype. (Provided by BMW)