Bayerische Motoren Werke (BMW) defines China as its mature market segment doesn’t mean it neglects China as one of its important markets. Bayerische Motoren Werke AG, best known as BMW, is a German automobile, motorcyle and engine manufacturing company founded in 1917. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. In China, it is better recognized as a luxury car brand which average people cannot afford. Its cheapest series costs 200 to 300 thousand RMB.
BMW’s Global Balance Strategy Compared With Audi’s China-focused Strategy
According to statistics, BMW achieved big success globally in its 2011 fiscal year. Last year, total revenue of the BMW Group reached 68.821 billion Euros, with a 13.8 percent increase and PBT reached 7.383 billion Euros, with a 52.1 percent increase. Net profit was 4.907 billion Euros, a 51.3 percent increase. To look further to the future, the BMW Group will keep up with its former goal, which is to become the would leading supplier for top grade cars and top grade personal transportation services. For BMW, the China market is already at its maturity stage. In the past few years, BMW has sufficiently developed the potential of the China market and in the future, BMW will more stress on the capacity expansion in countries as China, US, South America and India. Unlike Audi’s extreme focus in the China market, BMW stresses that a balanced global profit is especially crucial for the realization of the company’s goal.
China market at Its Maturity Stage for BMW
BMW defines China as its mature market segment doesn’t mean it neglects China as one of its important markets. The Golden Brick Five concept refers to Brazil, Russia, India, Korea and Turkey as the five fast growing markets for BMW cars. However, in terms of the China market, BMW sees more potential in areas like car financial services and second-hand cars. BMW is accelerating its localization in China. The Iron West factory located in Shenyang has already put into production of the BMW X1 Series. Not far from Iron West, another factory called Hua Chen Ma engine factory is the only engine factory that BMW established outside Europe.
BMW Compete in Compact Car Market
In China, the wider growth picture in emerging markets will surely favor compact cars. The compact car market will become the market segment with the most competition but right now no one can compete with BMW. After the launch of X1 Series, BMW will be planning to bring its New 3 Series to China. With the introduction of the New 3 Series, BMW will gain more advantage in compact luxury models.
