luxury brands'Performance in China market

Citing an undisclosed source from SOHU that in November 12th，BMW will announce to increase investment and expand production at the Great Hall of the people in Beijing.

Under the current situation that international automobile market is in the doldrums while Chinese market is bright, it is not only related to its success or failure in the Chinese market, but also will determine its status its in the global luxury brands market for BMW to expand production capacity and introduce new models.

Here let us take a look at the sales performance of the major luxury brands in China in recent years, especially the three brands of Germany, Mercedes-Benz, BMW and Audi through the data.

These data are published by the factories except that of the Lexus /Infiniti of 2009 is on the card ones. (if not point out, the statistics exclude Hong Kong, Macao and Taiwan)

These data are published by the factories except that of the Lexus /Infiniti of 2009 is on the card ones. (if not point out, the statistics exclude Hong Kong, Macao and Taiwan)

Three Japanese brands enter into the country late and have not domestic made ones. Their export volume is smaller in addition to Lexus. The three Germany brands are currently all localized that they have a higher sales volume. The sales of Audi, which became localized the earliest exceeded 100, 000 units in 2007. The process of Localization of determines the ranking of these three in China.

According to the sales growth from January to September in 2009, Audi has the highest sales volume but the lowest growth, which is 20% while Mercedes-Benz has the smallest sales volume but the highest growth, which is 41%. The reason for this phenomenon is Mercedes-Benz has tried hard to introduce its new models in addition that Audi, BMW have a base.

Mercedes-Benz’s E-Class cars will be available in China in July. Audi will release its Q5 in October and simultaneously announce to begin localization next year. To BMW, there are competitors both forward and behind I that it will fall behind if can not go ahead. Therefore, to BMW, the large-scale expansion of production capacity and the introduction of new models cars are imperative.

Then let us look at the sales performance of BMW Brilliance, the unique joint venture of BMA in China.

From the above figures we can see that in 2008 the monthly sales volume of BMW Brilliance was 2000 to 3000 units and increased to about 4000 in 2009. In the beginning of the joint venture was established in 2003, the annual production capacity of BMW Brilliance was planned to be 30000. However, as early as in 2007, the number was already 32000. The contradiction between production capacity and sales made the increase of capitals and the expansion of production become a necessity. There have been rumors that BMW's new factories will be built over the past two years.

In addition, currently the sales volume of the imported models of BMW such as 1 Series and X3 Series is hundreds units every month. It is believed that after the prices of domestic products are adjusted it is easy for BMW to achieve the scale of 1000 to 2000 each month. Presently the BMW is fully equipped to start its process of localization.(Translator: Yalong/ Jessie)

　　See original Chinese report Please click

　　(Translator: Yalong/ Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20091111/n268128357.shtml