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After seeing lackluster results with its pricey line of niche electric vehicles, BMW AG will take a more aggressive swipe at Tesla Motors Inc. by offering electrified versions of entire lineup of luxury vehicles.

BMW Chief Executive Officer Harald Krü ger, speaking with journalists Tuesday, said the German auto maker "will systematically electrify all brands and model series." The company's electric i3 small car and i8 sports car have been praised as engineering marvels, but the auto maker's move to electrify more popular mainstream models—including crossover sport-utility vehicles—could help BMW better meet tightening emissions standards.

Auto makers are placing bigger bets on electrification as regulators in Europe, the U.S. and China demand improved emissions over the next decade. Mr. Krü ger, spending the past year bolstering the company's tech pursuits, including the announcement last month that an all-electric Mini brand vehicle will arrive in 2019 followed in 2020 by an electric version of BMW X3 sport-utility vehicle.

"It's only possible to achieve this one in the next phase by building on the previous steps," Mr. Krü ger said in an interview. BMW's sales in the U.S. have been sluggish in 2016, and the executive was visiting America—considered the world's most profitable auto market—as part of a centennial celebration for the company.

Volkswagen AG and Daimler AG have also accelerated plans for EVs despite modest demand for them. Tesla, considered a leader among luxury electric-vehicle makers, aims to launch a cheaper Model 3 in 2017, a move that will be met by fresh battery-powered offerings from Audi, Mercedes, Porsche and other high-end brands.

Cheap fuel, inadequate infrastructure and fears about battery range have tamped down demand for EVs. Auto makers will need to invest more to move electrics up on buyer shopping lists, analysts say.

Volkswagen for example, plans 30 new electric vehicles during the next decade and for one in four of its cars sold to be pure electric or plug-in hybrid by 2025.

"It comes down to 'bang for your buck,'" Jeff Schuster, an industry analyst with LMC Automotive, said Tuesday. "For the German brands, EVs have to have high penetration for them to get anywhere near the emission targets and BMW won't be able to do it with [the i3 and i8] lineup."

In addition to electric, Mr. Krü ger has expanded BMW's focus on autonomous-vehicle research, also following a trend in the global car business. The company recently announcing a deal with chip maker Intel Corp. and auto supplier Mobileye NV, which makes the systems needed for self-driving cars, to team up to make a fully autonomous vehicle by 2021.

When it comes to electric vehicles, BMW is considered a first-move. BMW's i brand was launched in 2014 as part of the auto maker's efforts to address growing interest in electric vehicles.

The move came after Tesla's Model S's 2012 debut, costing as much as premium Mercedes luxury sedans, surprised the industry with rapid success with buyers and traditional auto enthusiasts. The i8 plug-in hybrid, with a $140,700 base price, was aimed at the high-end to attract attention for the brand while the compact, battery-electric i3, starting at $42,400, was to appeal to more mainstream buyers in big cities.

Sales didn't take off. In the U.S., for example, BMW sold 391 i3 cars last month, a 77% decline from a year ago, according to Autodata Corp., which tracks sales.

Globally, it sold about 25,000 of the i3 last year. Mr. Krü ger said the company should sell a total of about 60,000 electric vehicles this year, including plug-in hybrids.

Tesla, by contrast, is on track to build 80,000 electric SUVs and sedans and aims for 500,000 by 2018. The Tesla Model 3, which will aim at the popular BMW 3-Series, is "not a threat," Mr. Krü ger said. "We welcome competition."

The i3's odd look may have been a reason for limited appeal, Rebecca Lindland, senior director of commercial insights for Kelley Blue Book, said. "It really must've been the appearance of the vehicle, it's not the most attractive, neither is the Prius, but the Tesla is," she said. "If you're going to pick between the two, you're going to pick a Tesla almost every time if only from the emotional part of it."

Mr. Krü ger said the company hasn't decided to make an electric version of the 3-Series, but "I'm open to ideas."

Write to Tim Higgins at tim.higgins@wsj.com

(END) Dow Jones Newswires

October 11, 2016 21:25 ET (01:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.