Auto Special: Two millionth sale highlights BMW's sustainable growth

German premium marque BMW had sold 2 million vehicles in China by the end of the first quarter, marking another milestone of its development in the country after it celebrated selling its millionth vehicle in the world's largest auto market in 2012.

Such continuous growth in cumulative sales is significant to BMW's sustainable development in the long run, said Karsten Engel, president and CEO of BMW Group Region China.

BMW entered China in 1994 and has grown into one of the most popular premium brands in the country as the auto market surged in the past two decades. The company is fast adapting the new normal of medium economic growth.

"We are positive about the long-term potential and aim for sustainable growth in pace with the macro trend of market growth in the long run," Engel said.

"Despite the Chinese market entering into a new phase of normalization, China remains the most dynamic economy of its scale."

The automaker has come up with a strategy in which quality growth matters most, now that it has 2 million customers in the country.

"Such a large customer base will pave the way for further promotion of the brand and offer more opportunities for the development of aftermarket services," Engel said.

"We are to make even greater achievements in various aspects including customer satisfaction, win-win partnership and corporate social responsibility."

BMW has been ranked first for two consecutive years among China's premium brands in terms of customer satisfaction.

The automaker said it will continue to focus on quality and, at the same time, help its dealers diversify their businesses to provide such potential services as trading used cars.

Statistics show the number of used cars sold in the Chinese market is merely one-third of new car sales, while in developed markets such as the United States or Japan, used car sales exceed those of new vehicles.

BMW said that is why its BMW Premium Selection used car service has been increasingly successful since its launch in 2007. It estimates that the segment will grow even larger within three to five years.

The automaker is further improving its sales network but the focus varies among different regions.

BMW said it is expanding more dealerships in smaller cities, as they will become major engines of future growth, while sharpening its competitive edge in service in tier-one, two and three cities, which have a growing demand for after-sales services.

In order to better adapt to market challenges, BMW will help its dealers improve their competitiveness and profit-making ability by such measures as offering more support to new dealers and those who offer services such as used car trades and car loans.

Localization

Believing in the potential of the Chinese market, BMW will forge ahead with its localization campaign.

It has invested more than 2 billion euros ($2.17 billion) for infrastructure at its joint venture BMW Brilliance plants in Shenyang, Liaoning province, over the past five years.

Its two plants, located in Dadong and Tiexi, are expected to have a combined annual production capacity of 400,000 units over the next two years and a new engine plant, also in Shenyang, will start production in 2016.

The joint venture is now producing 3 Series and 5 Series standard-wheelbase and long-wheelbase cars as well as BMW's compact premium SAV X1.

The 3 Series and 5 Series long-wheelbase models were designed for the Chinese market, according to the company.

BMW said another three models would be introduced for local production, while it will also meet customers' demand for imported models.

BMW is also promoting e-mobility in China, with its BMW i available now at 11 dealerships in seven cities across the country.

In addition, its joint venture BMW Brilliance unveiled its own brand ZINORO in April 2013 and the first product of the new brand, the 1E, made its debut later the same year.

Instead of selling the cars, the joint venture is leasing them, which is believed to help improve the popularity of electric vehicles. They are currently available in Beijing and Shanghai.

lifusheng@chinadaily.com.cn

(China Daily 04/09/2015 page13)