The Hindu Business Line : India, China rev up BMW’s Asia-Pacific sales

Tokyo, Jan. 31 India and China continued to drive the growth of BMW AG’s Asia-Pacific sales in 2007, the luxury car maker said here on Friday. India posted the highest pace of growth in the region at 1,387 units during April-December, ahead of its target of 1,000 units for the entire year. The company said that it was all set to take on its competitor, Mercedes-Benz, in India.

Commenting at the Asia sales conference here, BMW’s Member of the Board of Management, Mr Stefan Krause, said, “In 2007, Asia sales rose to an all-time high. It continues to be the most significant region. While China may be a short-term bet with higher volatility, India is a very good long-term bet with better stability.” He also noted that Rolls Royce’s cars grew most strongly in China and India.

“India recorded a four-fold increase in sales, which is the highest in Asia,” said Mr Peter Kronschnabl, President, BMW India. BMW sales in India stood ahead of Indonesia at 1,000 units, Philippines at 805 units and Vietnam, where it sold 248 units. It was marginally behind Thailand at 1,821 units during the calendar year, where the company recorded a sharp decline with sales down by 41 per cent.

China continued to lead the market, with sales of 61,098 units and registering a 36.6 per cent growth as compared to the previous year. In Japan, the company registered 61,116 BMW and Mini vehicles last year, where the automotive market shrunk by 5.8 per cent during the year.

In India, the company in its first year of operations opened nine dealerships with sales driven by its three and five series cars produced at its Chennai plant. It is also importing its x3 and x5, Six and Seven series and M3, M5 cars in India.

Mr Krause said that, “Last year, we set up our International Purchasing Office in India and we are actively looking to export components for the region.” Talking about competition from Mercedes-Benz, he said “It is truly our belief that the segment we are in, will continue to grow. It is not unreal to assume that we can defend competition.”