BMW expects sales growth as new X models launched in China market

BMW AG is optimistic about its China performance this year, as the German premium carmaker introduces more models in its X family into its largest single market worldwide, according to a senior executive at its China operations.

Statistics from the carmaker show that BMW delivered 46,692 vehicles in the Chinese mainland in July, up 7.8 percent year-on-year.

That brought its total sales in the first seven months to 346,493 units, a 2.9 percent increase from the same period last year.

Liu Zhi, president of BMW China Automotive Trading, said the sales have been in line with the company's estimates.

"Looking forward, we are confident about our performance in the whole year. In fact, we expected to see faster sales growth in the last four months," Liu said.

His confidence is in part due to the fact that 2018 is BMW's Year of X in China, which means that the carmaker is further enriching its lineup with new Sport Activity Vehicle and Sport Activity Coupe offerings in the country.

So far this year, BMW's China operations have rolled out the all-new X2 in June, the all-new X3 in July, and the all-new X4, which hit the market at the just-concluded Chengdu Motor Show.

Compared with its predecessor, the X4 has an even sportier design. BMW has extended the wheelbase and the total length, offering more legroom for passengers in the back row. Its body has been streamlined.

The carmaker said it is also planning to introduce a fourth-generation X5 into China at the end of this year. In 1999, it was the first-generation X5 that opened up the SAV segment.

BMW will soon present the marque's first large-sized SAV X7 to Chinese consumers.

"We have a very long product line, ranging from the X1 to the forthcoming X7. With the more mature Chinese car consumers come diversified demands, and as a young and vibrant brand, we would like to meet their demands," Liu said.

Models in the X family hold a very important position in BMW's lineup, accounting for around one-third of the carmaker's total sales.

"As we introduce more new and face-lift models, the percentage will rise even higher," Liu said.

The SAV segment is one of the most competitive in the Chinese market, but BMW said it is not afraid of - and even welcomes - the competition.

"Thanks to our products' handling and performance, we have a leading position, as evidenced by sales. Both the X5 and the X1 are the best-selling model in their respective sub-segment," Liu said.

BMW's ambition is not limited to the SAV segment, nor even to gasoline-powered cars. The carmaker is looking for a top spot in future mobility with its ACES strategy, which stands for autonomous, connected, electrified and services/shared.

"BMW strives to be No 1 in all fields. It is something in our DNA," Liu said.

The carmaker has set a goal to launch 25 new energy vehicles by 2025 globally, with 12 of them pure electric ones, and the electrified BMW and MINI models to account for 15 to 25 percent of its total sales.

Last year, it delivered more than 100,000 electric cars globally, and this year, the figure is expected to total 140,000 units, according to the carmaker.

In addition to the advantages BMW enjoys because of its models' performance, Liu said the carmaker's flexible vehicle architecture has cut complexity in production and thus made the brand competitive in terms of consistency and cost.

The architecture, which covers internal combustion engine models, fully electric cars and plug-in hybrids at the same sites, are beyond many other carmakers' abilities in the short-term future, Liu said.

BMW is one of the first international carmakers to introduce electric cars into China, and the first among premium carmakers to establish a high-voltage battery center in China; the plant is offering battery packs for localized BMW 5 Series plug-in hybrids.

The phase two of the center started construction earlier this year.

According to the carmaker, the expanded plant will produce the new, more powerful batteries of the fifth-generation BMW eDrive technology for the fully electric BMW iX3 that will be built in China but sold globally.

With six electrified models currently available, BMW offers the widest range of options in the premium segment in the Chinese market. China outsold the United States in 2015 as the world's largest new energy car market.

The China Association of Automobile Manufacturers expected total sales of new energy vehicles to exceed 1 million this year.

lifusheng@chinadaily.com.cn

(China Daily 09/13/2018 page15)