BMW races ahead with record sales in Asia in 2005

The BMW brand gained an 18 per cent increase to reach 95,100 units, thanks to the success of the 7 series. The MINI increased its growth in the luxury small car segment with 16,350 vehicles sold while more than a hundred Rolls-Royce Phantoms were delivered to customers around the region.

Japan, whose sales account for more than half of its entire retail volume in Asia, sold more than 58,000 cars, breaking new records. Sales in China made up 30 per cent of Asian market, about half of which were locally built vehicles. Singapore, their biggest market in South East Asia, contributed 4 per cent, selling more than 3,500 units while South Korea, Thailand and Malaysia all saw an increase in domestic sales as well.

BMW Chairman Dr Helmut Panke, 59, said in the Singapore press conference, “Asian operations today constitute a substantial and valuable component of our global business, providing us with the momentum for further growth and expansion in this part of the world.” The company is betting that consumers will be more brand conscious, choosing their luxury marques over the mass-produced ones to increase its market share in the years to come.

The new BMW 3 series launched last year won a slew of awards such as the ‘Import Car of the year’ in Japan, and the ‘most favourite car brand’ in China, contributing substantially to the phenomenal growth in Japan, China, South Korea and South East Asia with a tripling of its sales in retail figures compared to its predecessor.

Dr Helmut Panke, 59, said, “Driving a MINI has become a symbol for a certain way of life.” With more than 13, 000 units sold, Mini reached an all time high in Japan while in China, the MINI had two-digit growth rates selling 1, 420 units. In South Korea, it out-performed all competitors in the small car segment selling 770 cars.

In Singapore, BMW is the leading brand in all luxury car segments for the first time ever, with the BMW 7 series outselling its competitors for the fourth consecutive year. BMW is also the official car of the International Monetary Fund and World Bank Conventions in Singapore.

“One of our long-terms plans is to expand the footprint of our assembly plants in Asia,'' Dr Panke said. BMW seeks to “pool these standalone facilities in a multinational Asian production network with a regional hub from where the entire region could be supplied,'' he said.

BMW currently has four production plants in Asia with the fifth one due to start operations in Chennai early next year. This will allow the carmaker to sell its locally produced cars through a series of dealer networks in what the company estimates to be one of the world’s most rapidly growing economies.

Dr Panke stresses that the long term goal of BMW is to grow in existing markets, expand into new ones and accomplish a sales target of 150,000 units by 2008. They hope to increase the share of Asia in the worldwide automotive business of the BMW Group from 8 per cent to 11 percent.

He also highlighted that the BMW Group would continue its product and market initiative with models such as the updated Z4 Roadster and Z4 M Roadster, which recently made their world debut at the Detroit Motor Show in January.

The success of the MINI convertible, the X3, the 1 series and the 6 series range of vehicles in 2005 was a validation of BMW's foray into new segments.

A peek into 2008 reveals the ‘space-functional concept’ car which emphasises on space combined with an elegant sporty look as well as the never-seen-before ‘cross-over’; a combination of a sports activity vehicle and a coupe.

Having already achieved last year’s sales target of double digit growth, they look on course to achieve their targeted retail sales volume in the year to come.

Credits: epicurean