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BMW may beat forecast for 2 million sales mark

2014-04-21 09:17 Shanghai Daily Web Editor: qindexing
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Bayerische Motoren Werke AG, the world's largest luxury car maker, has set a target to sell 2 million cars globally this year after achieving record sales and profit for a fourth consecutive year in 2013.

In China, the German automaker is aiming for low double-digit growth after this nation became its largest single market in 2013, with a 19.7 percent sales jump to 391,713 vehicles.

"We are aiming to achieve a significant rise in sales volume in 2014, which would take us to a new all-time high of over 2 million vehicles," BMW Chairman Norbert Reithofer said at the company's annual accounts conference in Munich last month.

BMW had earlier set 2016 as the year for reaching the 2 million sales benchmark.

In 2013, BMW delivered 1.96 million vehicles to customers, a 6.4 percent increase from a year earlier. Its three brands all contributed to the growth. BMW delivered 1.66 million cars, a 7.5 percent increase. Mini sales expanded 1.2 percent to 305,030, and Rolls-Royce sold 3,630 cars for a 1.5 percent gain.

BMW competitor Audi delivered 1.58 million cars globally last year, while rival Mercedes-Benz sold 1.46 million.

However, BMW still lags behind Audi in the Chinese market, despite the fact that it sold more than half-million cars in Asia for the first time last year. Audi achieved a 21.2 percent of jump in China in 2013, selling 488,488 vehicles. Mercedes-Benz sold 218,045, an 11 percent increase.

The tug-of-war in the domestic market didn't change much in the first quarter of this year. Audi retained its pole position, selling about 124,500 units in China. BMW still came as second with 107,951, while Mercedes-Benz sold 67,058.

More than half of the BMWs sold in China last year were produced locally, according to Karsten Engel, president and CEO of BMW China.

"Domestically produced models will become a key driver for our growth, and the portion will exceed 60 percent of total sales in China in the near future," he added.

In 2013, the Munich-based company expanded annual production capacity by up to 300,000 cars at its China plant with local partner Brilliance.

BMW is also working with Brilliance to construct an engine plant, which will be the German maker's first engine production facility outside Europe. The factory is expected to open in 2016.

"Sales of entry-level luxury models are growing stronger in China," said Yale Zhang, a founding partner of Automotive Foresight (Shanghai), referring to BMW and other automakers.

Entry-level luxury models normally sell for 300,000 yuan (US$48,290) or less. The trend indicates a growing number of individual and family buyers, turning from a mostly corporate purchase base.

For growth this year, BMW is banking on importing a dozen new models, including the latest generation of X5. It is also focusing on clean energy cars, with scheduled sales of the i3 model set to start by the end of the year.

The all-electric i3 model is BMW's first electrically powered production vehicle in the global market. The lightweight car is also BMW's first model with an outer skin made entirely of thermoplastics, except for the roof.

"We will focus sales of the i series in Beijing, Shanghai, Shenyang and Shenzhen in the first stage," said Engel, who said he discussed infrastructure construction for clean energy cars with Shanghai officials late last year.

BMW was previously scheduled to begin sales of the i3 in China by June. The timetable was delayed for at least three months due to a "booming demand, especially in Europe," Engel said earlier.

"The clean energy mobility market in China is still in a very preliminary stage," said analyst Zhang. "Charging infrastructure, price, battery energy — these stumbling blocks have to be removed for development to proceed."

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