BMW Strategy Analysis in China

BMW in China- The luxury ride for people who want to stand out from the rest

Bayerische Motoren Werke AG English for Bavarian Motor Works more famously known as BMW is a German automobile firm that has made its presence felt across the world and China is no exception. But, to say makers of luxury cars are nervous will also not be wrong. The economy of China has cooled and the political leaders are giving threats on cracking down on corruption and ostentation. The season should have been a time of giving gifts, jewelry, and likes but the manufactures of these expensive gifts are facing a nightmare of rectitude. But, this is making no difference for luxury car sellers as they are ebullient as always. Even the market in China has grown 36% each year over the decade. In fact, China is becoming the second largest market for luxury cars in the world BMW and Ashton Martin estimating China will surpass America and become the biggest consumer by 2020.

BMW’s stand in China

The sales of BMW have risen 20% from last year and are ready to overtake the US as the biggest market of the group should clear the place. BMW sold a record 390,713 BMW and Mini cars last year which is up by 19.7% with the expected overall market growth of 13.9% which is why more and more Chinese are buying luxury cars from BMW.

China’s premium car market expects to grow by 12% annually by 2020 and by 2016 expects in overtaking the US. Even the brand cars of BMW’s sales grew by 19% bringing 362,100 units on the road and 28,613 units by 23% growth on the Mini cars.

BMW’s expansion

BMW is ready to expand itself in China with its joint venture partner Brilliance China Automotive Holdings Ltd are full-on plan to make more than 400,000 engines a year with a new facility at the new plant in Shenyang. The strong sales of the luxury BMW cars have helped boost the net profits by 16% in the third quarter itself. The Chinese sales rose to 30% while the European sales barely managed with 2.6% and over at the Southern European front the scenario is worse as the economy has hit its hardest including BMW’s home market back in Germany.

BMW’ future in China

BMW is all set to launch its new third-generation Mini in china. In fact, the new mini and its sister car the front-drive BMW are going to be made right here in China at the Tiexi plant in Shenyang under BMW’s joint venture, north-west in China by 2015.

BMW and Chinese taste

Chinese customers are never easy to satisfy especially foreign companies. Those who understand them have a future in China’s market and BMW has done just that.  BMW has found that the Chinese love long wheel-based cars as they feel this makes a strong statement on their accent in life. And, BMW understands this perfectly which is why they have developed the 7-series, especially for its Asian market.

Website of BMW in China here,

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