FRANKFURT, Dec. 3 (Xinhua) -- "The Chinese market and its customer demand retain the highest relevance in BMW's global strategy," said Nicolai Martin, member of the Board of Management of BMW AG.
Martin made the remarks during an interview with Xinhua, emphasizing that strengthening ties with China is not merely a commercial choice but a strategic imperative for ensuring global supply chain resilience and advancing the industry's green and digital transformation.
-- Navigating interdependence in a fragmented landscape
The profound interdependence of the modern auto industry was highlighted by Martin as he detailed BMW's approach to recent tariff challenges. He pointed to the production of the BMW X5 as a case study in global integration.
"Nearly all essential tooling for the upcoming X5 series is produced in China," Martin revealed, illustrating the deep entanglement of the supply chain even for vehicles assembled elsewhere.
Confronted with potential logistical disruptions and cost pressures from tariffs, BMW opted for strategic agility over abrupt decoupling. The company tactically delayed certain shipments, recalibrated logistics schedules, and leveraged its global production network to reallocate resources.
"This allowed us to mitigate the impact effectively, protecting our customers from bearing additional costs," Martin explained, framing a stable and open supply chain as a universal benefit in a highly interconnected industry.
-- Competing through local empowerment, not "badge engineering"
While acknowledging intense competition and volume pressures in the Chinese electric vehicle market, Martin outlined a strategy of deeper local immersion.
"We are not interested in seeing the numbers getting lower. We are fighting back through enhanced cooperation, not contraction," he affirmed. "China remains our biggest single market, and the customer demand there is of the highest relevance."
The company has established a comprehensive industrial ecosystem in China, spanning from local production of core models -- from the entry-level UKL platform to the premium X5 -- to advanced research and development.
The collaboration extends into the digital realm, with strong partnerships with Chinese tech giants such as Baidu, Tencent, and Huawei. Martin was unequivocal in dismissing the practice of "badge engineering" -- simply rebranding an externally developed vehicle.
"That is a totally different approach, which we don't like," he said. Instead, BMW insists on co-development with local teams to ensure that its brand promise of "Sheer Driving Pleasure" is seamlessly integrated with China's cutting-edge innovation.
-- "Thanks to China": accelerating the green transition
The agility and innovation of BMW's Chinese partners are also proving instrumental in achieving the automaker's sustainability targets.
"Thanks to China, particularly our battery cell suppliers, we have achieved a significant improvement," Martin noted, highlighting that local suppliers transitioned to renewable energy for production "within only a few months."
This rapid execution yielded verifiable results, contributing to a reduction in the supply chain carbon footprint of the BMW iX3 by approximately 42 percent compared to the previous generation.
Looking ahead, Martin reaffirmed BMW's "technology-open" approach, pursuing electrification while respecting diverse market needs. He believes that the German and Chinese automotive industries will continue to leverage their respective strengths, fostering innovative cooperation to jointly steer the global transition toward green and low-carbon mobility.
(Contributed by Ma Yueran, edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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