BMW Sales Up 120 Percent This Year
BMW has registered healthy growth in the China market
this year, with sales up 120 percent compared to 2002.
In the first six months of this year, the German auto
maker has sold 5,970 cars, compared to 6,677 for the whole
of 2002. BMW expects to sell 12,000 imported vehicles
in China this year.
Although the number is not large, BMW expects this to
the beginning of major sales growth in the China market.
Major auto makers are stepping up there production in
China, and there are fears of overcapacity and resulting
price wars.
However, BMW does not expect to be seriously affected
by this trend because its cars are focused on the premium
car market. Other leaders in the premium car market are
Mercedes Benz. Traditionally, wealthy urban Chinese hold
premium brands in higher regard, and are willing to pay
higher prices for them.
Sales of major brand products have been driven by rising
incomes and booming property prices. Combined with easy
finance, this has made ownership of luxury cars readily
available.
In China, the most popular models are the top of the
range 7 series, which sell for as much as US$169,000.
Prices are considerably higher in China because of import
duties, which are designed to protect domestically manufactured
cars.
BMW also has a joint venture in Shenyang, Liaoning with
Brilliance China Auto Holdings to sell locally made cars.
It plans to produce 30,000 cars annually.
Premium models such as the 7 series will continue to
be imported.
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