BMW : Collaboration with key automotive associations in 2025

COLLABORATION WITH KEY AUTOMOTIVE ASSOCIATIONS. CALENDAR YEAR 2025. Introduction

The BMW Group operates within an increasingly interconnected and rapidly evolving global landscape. Its business activities continue to shape - and be shaped by - a broad array of political, economic, technological and societal developments. As regulatory expectations grow and geopolitical dynamics become more complex, transparent dialogue with stakeholders remains essential to building mutual understanding, strengthening trust and ensuring clarity around perspectives and expectations.

Against this backdrop, the BMW Group maintains an ongoing and constructive exchange with key automotive industry associations in Germany, at EU level in Brussels, in the United States and in China. These associations play a crucial role in informing regulatory debates, shaping the mobility ecosystem and providing a platform for discussing industry-wide matters.

In 2025, discussions with these associations focused on a range of strategic topics central to the transformation of the automotive industry. These included:

• The path towards climate neutrality and the implementation of global and regional climate policy frameworks

• Advancing electrification, including charging and hydrogen infrastructure, battery policy and sustainable supply chains

• Emerging technology and innovation topics such as digitalisation, automated and connected driving, and cybersecurity

• Trade, competitiveness and the resilience of international value chains amid shifting geopolitical conditions

• Harmonisation of global standards and regulatory coherence across major automotive markets

  As an active member of the associations highlighted in this report, the BMW Group contributes its technical and strategic expertise to support evidence based policymaking and advocates for regulatory frameworks aligned with the goal of climate neutrality, technological openness and a globally competitive automotive industry.

  GERMAN ASSOCIATION OF THE AUTOMOTIVE INDUSTRY (VDA)

  The BMW Group is a full member of Manufacturer Group I (Automotive Manufacturers), which brings together more than 650 car manufacturers and suppliers. As a member of the VDA, the Group is active in the various bodies of the association, including the Management Board, committees, working groups and steering committees.

  Key focal points of the VDA's work include data, international trade, drivetrain technologies, taxation and regulation, energy supply, and market-specific policy issues such as the promotion of research and development.

  In the field of regulation and drivetrain technologies, the BMW Group is committed to promoting sustainable goals and legislation, with a view to securing political support for its goal of climate neutrality by 2050.

  Securing this support means representing the interests of the BMW Group to policymakers via the VDA on issues such as establishing the necessary preconditions for electromobility, charging infrastructure, the hydrogen industry, industrial decarbonisation and secure supply chains and raw material supplies.

  In 2025 key collaboration topics included:

  Streamlining and simplifying EU regulatory requirements

  The VDA is committed to ensuring that EU regulations (e.g. CSRD, CSDDD, EUDR) are implemented in a practical manner and adapted to ensure economic feasibility through EU Omnibus initiatives and as part of national implementation.

  Link: VDA press release on Omnibus Initiative

  Affordable charging via public charging infrastructure

  Charging electric vehicles via public infrastructure is significantly more expensive than private charging. Affordable public charging often requires consumers to manage multiple charging contracts, adding considerable complexity.

  Those without access to private charging are therefore disproportionately affected by high prices and market fragmentation, as they rely heavily on public charging. This creates an additional barrier to the transition to electromobility and slows market uptake.

  Against this backdrop, the VDA supports measures to improve price transparency and reduce the financial burden on consumers.

  Link: VDA position paper on charging prices

  Need for adjustments to the draft of a third law to amend the Energy Tax Act and the Electricity Tax Act The VDA welcomes the draft bill's removal of barriers to electric mobility under electricity tax law. However, the issue of double taxation of bidirectional charging (vehicle-to-grid) remains unresolved, indicating a continued need for action under tax law. Further adjustments are also required with regard to the taxation of hydrogen:

  to avoid jeopardising sustainable CO₂ reductions in freight transport, hydrogen should be exempt from energy tax, irrespective of its end use, in order to facilitate the establishment of hydrogen fuel cell powertrain technology.

  In addition, to support the ramp-up of electromobility, the VDA is calling for a reduction in the electricity tax to the EU minimum rate and for the motor vehicle tax exemption for purely electric vehicles to be extended until 2035.

  Link: VDA statement on the Energy Tax and Electricity Tax Act

  Low-cost transposition of EU efficiency requirements into national law

  The VDA supports a low-cost transposition of the EU Energy Performance of Buildings Directive (EPBD) into national law in order to enable a cost-efficient transformation of company sites. Key objectives include legally robust threshold values for minimum energy performance standards (MEPS), adequate transition periods, technology-open compliance options and the possibility of pooling requirements across multiple locations. Any national tightening beyond EU requirements should be avoided.

  The solar obligation should be organised in a cost-efficient manner within the framework of so-called photovoltaic accounts. The requirements of the German Buildings Energy Act (Gebäudeenergiegesetz, GEG), the Heat Planning and Decarbonisation of Heat Networks Act (Wärmeplanungsgesetz, WPG), the Energy Efficiency Act (Energieeffizienzgesetz, EnEfG), the Energy Services Act (Energiedienstleistungsgesetz, EDL-G) and the EU's EPBD should be harmonised.

  Link: VDA statement EPBD

  EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION (ACEA)

  Headquartered in Brussels, Belgium, the European Automobile Manufacturers' Association (ACEA) represents 17 leading European manufacturers of cars, vans, trucks and buses. Acting as the collective voice of its members, the ACEA engages in policy discussions with EU institutions, bringing together industry expertise to support fact-based dialogue with policymakers and stakeholders - an approach closely aligned with the BMW Group's commitment to informed and collaborative policymaking.

  As a full member of the ACEA, the BMW Group is represented on its Board of Directors, which comprises the CEOs of all member companies. BMW Group experts actively participate in ACEA's working groups and committees, contributing technical and strategic insights on key topics such as emissions, electrification, digitalisation and vehicle safety.

  In addition, like other members, the BMW Group occasionally seconds technical experts to the ACEA, providing valuable industry expertise and further strengthening the competitiveness of the European automotive sector -while fully respecting antitrust and compliance requirements.

  Through the ACEA, the BMW Group collaborates with other manufacturers to develop common positions for presentation to EU policymakers and regulators. Together, members advocate for the automotive industry's interests across the ACEA's four key policy areas:

• Climate, sustainability and circular economy

• Digital, connected and automated mobility

• Vehicle and traffic safety

• Trade and geopolitics

The European automotive industry is one of the most heavily regulated sectors, subject to more than 150 EU regulations and over 30 directives. At the same time, there remains scope to improve legislative coherence while strengthening international competitiveness. Greater alignment between EU and international regulations is essential to accelerate the transition to climate neutrality and facilitate global trade, including through consistent rules for vehicle design, construction and approval.

To support this objective, the ACEA represents its members in international regulatory discussions, including within the World Forum for Harmonization of Vehicle Regulations (WP.29) of the United Nations Economic Commission for Europe (UNECE), in cooperation with the International Organization of Motor Vehicle Manufacturers (OICA). This collaboration aims to advance global harmonisation and establish common standards for motor vehicles worldwide, contributing to a more consistent and efficient regulatory framework.

Ongoing discussions within the ACEA on current EU industrial policy measures clearly reflect the challenging market environment. Diverging perspectives among member companies can complicate consensus-building, particularly on fundamental issues, potentially affecting the development of joint positions within the association.

A prominent example is the debate surrounding the EU's Industrial Accelerator Act and the associated "Made in the EU" framework, which plays a decisive role in determining the eligibility of electric vehicles for support within Europe. The implications are significant, affecting areas such as national taxation schemes and the future design of purchase incentives.

Similar divergences can also be observed across other regulatory topics, including discussions on treatment of vehicle length within CO₂ fleet regulation, where differing national industry interests limit the scope for alignment. Comparable differences also persist in deliberations on requirements for corporate fleets, with member positions continuing to diverge.

At the same time, concerns across the industry regarding increasing competitive pressure from Asia are becoming more pronounced. While opinions differ on the appropriateness and scope of potential EU protective measures, there is a growing recognition that European industrial policy should deliver benefits for all EU-based companies, irrespective of their specific business models. Whether they primarily serve the European market or operate globally from a European base should not determine their access to policy support.

ALLIANCE FOR AUTOMOTIVE INNOVATION G AUTOS DRIVE AMERICA

The Alliance for Automotive Innovation - or Auto Innovators, for short - represents 45 auto manufacturers, autonomous vehicle innovators, equipment suppliers, battery producers and semiconductor makers. Based in Washington D.C., Auto Innovators is the primary advocacy group for the automotive industry for legislative and regulatory processes in the United States, focusing on member companies' shared commitment to making vehicles cleaner, safer and smarter.

Senior executives from BMW of North America serve as lead members of the Administrative Board, and also as members of the Executive Committee and Strategic Planning Committee. Through its partnership with Auto Innovators, BMW of North America has advanced important legislation on issues such as electric and autonomous vehicles, the right to repair and data privacy. Auto Innovators supports these efforts through advocacy initiatives across a broad range of policy areas, including connected automation, energy and environment, electric vehicles and charging infrastructure, and vehicle safety.

In Washington, D.C., the BMW Group is also a member of Autos Drive America, which represents twelve international automakers with operations in the US. Autos Drive America works to strengthen the US automotive industry by advocating for, and defending, open trade and investment policies that support job creation for Americans and expand consumer choice.

In 2025 key collaboration topics included:

Electric vehicles:

To position the US at the forefront of a cleaner future, Auto Innovators supports a comprehensive approach that reflects current market realities while recognising ongoing investments and innovation in internal combustion engine technologies. For electric vehicles (BEVs and PHEVs), a suite of complementary policies at both the state and federal levels is required to create a supportive market environment for increased electric vehicle adoption. Such measures include purchase incentives, expanded charging and hydrogen refuelling infrastructure, and targeted fleet procurement programmes. In this context, Auto Innovators has played a key role, particularly in advocating for the preservation of Inflation Reduction Act (IRA) tax credits and in communications related to ACC II.

Link: Auto Innovators: EV Agenda

Autonomous / connected vehicles:

Auto Innovators supports strong federal leadership - while respecting traditional role of state authorities - to enable the auto industry to deliver the life-saving benefits of connected and automated vehicles to consumers as quickly as possible. Smart investments in infrastructure can make roads safer, more efficient and cleaner. To this end, the US should pursue infrastructure investments that support and leverage the significant benefits of vehicle automation, connectivity and electrification. Smart infrastructure investments can foster continued technological innovation in the US and secure the country's position as a global leader in transportation.

Link: Auto Innovators: Autonomous Driving

CO2 / greenhouse gas emissions:

Auto Innovators supports a unified national regulatory framework to deliver effective emissions reductions. A harmonised programme that includes California and aligns Corporate Average Fuel Economy (CAFE) with greenhouse gas (GHG) emissions regulations is essential to achieve year-on-year improvements in efficiency.

Trade:

Autos Drive America is strongly committed to trade policies that promote open markets, encourage investments in the US and provide certainty through meaningful and enforceable rules.

Link: Auto Drive America: Trade Agenda

Workforce development:

Autos Drive America is committed to advancing smart policies that support job growth throughout the automotive industry and enable a robust, well-equipped workforce to thrive. Member companies are creating valuable career pathways and must continue to strengthen these opportunities while ensuring fair and equal treatment of all American auto workers.

COLLABORATION WITH INDUSTRY ASSOCIATIONS IN CHINA

The BMW Group is actively working with the China Association of Automotive Manufacturers (CAAM), the China Automotive Technology and Research Center (CATARC), the China Society of Automotive Engineers (SAE-China), the China Electric Vehicle Hundred People Association (EV100), the ACEA China, the VDA China and the China Association of Enterprises with Foreign Investment (CAEFI). These exchanges focus on policy and regulatory issues related to fleet fuel consumption, ZEV mandates, emissions, sustainability, cybersecurity and intelligent and connected vehicles, investment and other industrial policies.

In addition, the BMW Group is collaborating with the EU Chamber of Commerce in China (EUCCC) and the German Chambers of Commerce Abroad (AHK) on industrial, geopolitical and trade-related topics.

In 2025 key collaboration topics with these organisations included:

New Energy Vehicles:

In China, New Energy Vehicles (NEVs) - which include battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), range-extended electric vehicles (REXs) and fuel-cell electric vehicles (FCEVs) - have experienced rapid growth, accounting for a record share of approximately 53% (insurance data) of new passenger vehicle sales in 2025. This represents a 7%-point increase compared with 2024. Nevertheless, targeted strategies are required to create a healthier competitive environment. Through active participation in discussions organised by various associations, the BMW Group advocates technological openness and promotes the principle of market dynamics and consumer choice.

The BMW Group also collaborates with other manufacturers via the EUCCC to develop unified positions to present to policymakers and regulators. Together, members advocate for the automotive industry's interests, with a particular focus on:

• Sustainability and the circular economy

• Vehicle technical standards

• Supply chain resilience

Cross-border data transfer:

Multinational companies that rely on daily data exchange across global entities require clear, compliant cross-border data transfers. Through its engagement with the VDA and ACEA, the BMW Group has contributed to several position papers reflecting the key interests of international automotive manufacturers, advocating streamlined regulations that enable more efficient and cost-effective data flows.

Vehicle safety:

The rapid deployment of emerging vehicle technologies has prompted China to accelerate regulatory oversight of features such as concealed door handles and advanced driver assistance systems. To help ensure the stability of the product offering, the BMW Group has worked closely with the VDA to formulate recommendations for authorities. Its advocacy focuses on maintaining technological neutrality, fostering diversified innovation, establishing reasonable transition periods for implementation and ensuring alignment with international standards.

Export control:

Given the deep integration of global value chains, a stable supply of essential components - such as semiconductors and critical materials - is vital for sustainable development. Consequently, the BMW Group has engaged in intensive dialogue with Chinese authorities, in close collaboration with the VDA and ACEA.

Trade and geopolitics:

The BMW Group has supported trade associations such as EUCCC and AHK in calling for the Chinese government to continuously improve the business environment for multinational corporations. This includes fostering a healthier competitive environment, accelerating the development of a unified domestic market, ensuring a level playing field for foreign enterprises, and promoting fair and impartial law enforcement.

The BMW Group also supports the view that both the EU and Germany and China should strengthen pragmatic cooperation. Trade disputes should be resolved through consultation and negotiation, including by addressing each other's core concerns.

Links:

European Chamber of Commerce: Automotive Working Group Position Paper 2025/2026 European Chamber of Commerce: European Business in China Position Paper 2025/2026 German Chamber of Commerce (AHK) Positions

BMW AG, May 2026

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