Despite the atmosphere of crisis, the German company, which last October reached the majority in the JV that produces its cars, has increased sales in January by 15% in the Chinese market. Now is aiming to the electric sector, challenging Tesla and local manufacturers.
Last January China was the main global growth engine of BMW, selling 63,135 vehicles in the Chinese market, setting the record of 15.5% in January 2018.
This positive performance is mainly due to the full availability of Series 5 and X3, which are produced on site. Instead, as expected, significant model renewals in the United States led to a decline in sales (-6.3% y/y to 20,559 units).
Driven by sales in China, which account for over 37% of the total for the month, the turnover of the German company has slightly increased globally, marking a +0.5% in January with 170.463 vehicles of the three premium brands in the portfolio, BMW, Mini and Rolls-Royce.
"Despite the difficult market conditions all over the world, we have still increased sales", explained Pieter Nota, member of the board of directors of BMW AG and responsible for sales and for the BMW brand. "We are expecting a slight growth in 2019, even if the renewal of the 3 Series model, the best-selling ever, will affect sales in the first quarter. Growth will be driven mainly by the full availability of the X5 model", he added.
Sales of electric vehicles also increased in January and BMW estimates that by the end of this year the number of electric vehicles of the group on the roads of the world will amount to over half a million. Overall sales of electric vehicles of the BMW group increased by 1.4% compared to January 2018, to 7,234 units. The increase was achieved despite the limited availability of two key plug-in hybrid vehicles, due to the renewal of the models.
"The introduction of the new models 330e and X5 xDrive45e by the end of the year will encourage the sales growth of the electric vehicle range", the German company explained. The i3 is the best-selling electric car. The introduction, at the end of last year, of a more powerful battery contributed to increase deliveries in January to 2,598 units, 30.4% more than the same month last year. The 530e model has also been an important growth engine, with deliveries increasing by 82% to 1,722 units.
The outcome of the Chinese market is the result of a strategy started in 2003 that led to the establishment of the joint venture BMW Brilliance Automotive. Its model plant based in Shenyang, in northeastern China, has led to a share increase of BMW from 50 to 75% of the capital, simultaneously renewing the partnership for another 22 years until 2040.
Alongside manufacturing, BMW has developed three research centers, in Beijing, Shenyang and Shanghai. Hundreds of technicians operate using cutting-edge technologies, such as autonomous driving, which have been undergoing level tests on the streets of Shanghai from 2014, or electric vehicles.
The research center in Shanghai is particularly focused on digital services and connectivity of future cars while the Designworks team is working to develop the models of the future. Research team in Shenyang is focused on high voltage batteries, whereas the 200 Beijing technicians are working on tests and their validation.
(Source:Class Editori)
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