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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