Shanghai. The BMW Group today celebrated the world
premiere of the striking new BMW 7 Series in Shanghai, China. The
choice of location for the event underlined the significance of the
Chinese market for the company’s new flagship model: in 2018, 44% of
global BMW 7 Series sales were made to customers in China (ca. 24,500
units). With the current ongoing launch of a whole range of new
models, including the BMW 8 Series range and the BMW X7, today’s event
was also an opportunity to showcase the BMW Group’s new luxury
line-up. China will be a key market for these luxury vehicles.
Speaking at the event, Harald Krüger, Chairman of the Board of
Management of BMW AG and his two colleagues Nicolas Peter, Board
Member for Finance and Pieter Nota, Board Member for Sales and Brand
BMW, also underlined the wide-ranging strategic importance of China
for every aspect of the company. China has been the BMW Group’s
biggest single sales market since 2013, and the country is also home
to the company’s most extensive RD and production operations
anywhere outside Germany.
China accounts for a quarter of BMW MINI sales
The Shenyang-built seventh-generation BMW 3 Series is set to be one
of 25 new BMW Group models due to be launched in China in 2019. China
accounted for a quarter of all BMW MINI customer deliveries in
2018 and with total sales of 639,953 vehicles, last year achieved a
7.7% sales increase. Speaking at today’s event in Shanghai,
Harald Krüger confirmed, “In 2019, we are aiming
for further solid sales growth in China. The locally-produced BMW X3
will be our main growth driver, in addition to the many new models we
will be introducing throughout the year. China is a very important
strategic market for us, for sales, innovation and production, now and
in the future.”
Seventh model to be localised in China
The Chinese city of Shenyang is home to the BMW Group’s biggest
production base outside Germany, with two existing manufacturing
plants and an engine plant. Construction work is underway at Plant
Tiexi which will double the size of that facility. In Shanghai today,
it was announced that the BMW X2 will later this year become the
seventh BMW model to go into production in China. This decision was
taken in response to demand for the BMW X2, increasing supply of this
new Sports Activity Vehicle in addition to those built in Germany at
Plant Regensburg. This move will further strengthen the
competitiveness of the company’s SAV offering in China, following
localisation last year of the BMW X3 and in addition to the locally
produced BMW X1. From 2020, the fully-electric BMW iX3 will also roll
off the production line at Plant Dadong, its sole production location,
and be exported from China to markets worldwide. Both plants are
currently undergoing extensive remodelling and expansion measures –
once the upgrade and extension is completed, further models could be
localised as the total capacity is increased gradually to 650,000
units, thereby creating 5,000 new jobs.
All these manufacturing plants, including the engine plant and
battery assembly facility, are operated by the joint venture BMW
Brilliance. Last year, the production of BMW vehicles in Shenyang grew
by 24% to more than 490,000 units. The joint venture has been such a
success, the contract is due to be extended until 2040. In this
context, the BMW Group is planning to increase its share in the Joint
Venture to 75 percent – a clear sign of the company’s belief in
China’s continuing growth.
Crucial role in ACES development
In recent months, the BMW Group has opened two new RD centres in
Beijing and in Shanghai. They will play a crucial part in the
company’s corporate strategy NUMBER ONENEXT, as they will make a
significant contribution to innovations in the four major innovation
fields know as ACES (Autonomous, Connected, Electrified,
Services/Shared). “These four areas are at the centre of our strategy
for future success,” said Harald Krüger. “With our two new research
and development facilities in China, we want to tap even more into the
huge potential of this market, developing technologies and products
here which will be of real benefit to customers globally, as we strive
to strengthen our position as the world’s leading premium automotive
manufacturer,” Krüger continued.
BMW Group was the first non-Chinese automotive manufacturer to
receive an autonomous driving road test license in
China. Given the complexity of the Chinese road network, lessons
learned in China will be invaluable in other markets as the BMW Group
moves forward in developing key future autonomous technology. To date,
BMW China has completed tens of thousands of kilometres of road tests
and hundreds of thousands of kilometres in simulations. The company
will also take a seat on the board of the Baidu Apollo automotive
driving initiative.
Connectivity plays a major role in China, and the BMW
Connected app is already used by over 1.5 million Chinese customers.
Now, the app has been linked to the Chinese connected eco-system,
thanks to a series of co-operations with Alibaba, Baidu and Tencent.
In addition, the BMW Group will be the first premium carmaker to
seamlessly integrate Alibaba Tmall Genie, the intelligent voice
assistant from Alibaba A.I. Labs, into its cars, with the service
becoming available later this year.
China is the world’s biggest market for electrified
mobility and BMW is the country’s most popular premium New Energy
Vehicle (NEV) brand. The company offers a total of six electrified
models in China and sold over 23,000 battery electric and plug-in
hybrid vehicles in 2018. The BMW Group was the first premium
automotive manufacturer to establish a high voltage battery assembly
facility in China and is also the only premium manufacturer that has
its own NEV dealer network, with over 330 sales and service outlets in
more than 130 cities across China. To further support drivers of
electrified vehicles, with its ChargeNow services the BMW Group offers
more than 80,000 charging pillars in more than 150 cities.
In the increasingly important field of digitalised mobility
services, at the end of last year the BMW Group was
the first non-Chinese company to be awarded a Ride-Hailing licence.
The service is based in Chengdu, one of the largest Ride-Hailing hubs
in the world, and runs with a fleet of 200 BMW 5 Series, half of which
are plug-in hybrids. The Ride-Hailing service will complement the BMW
Group’s existing ReachNow Car-Sharing operation, run in partnership
with the local mobility company EVCARD and using a fleet of 100 BMW i3 vehicles.
For questions please contact:
Corporate Communications
Emma Begley, Corporate Communications
Telephone: +49 89 382 72200
Emma.Begley@bmwgroup.com
Max-Morten Borgmann, Corporate Communications
Telephone: +49 89 382-24118
Max-Morten.Borgmann@bmwgroup.com
Mathias Schmidt, Head of Corporate and Culture Communications
Telephone: +49 89 382-24544
Mathias.M.Schmidt@bmw.de
Internet: www.press.bmwgroup.com
e-mail: presse@bmwgroup.com
The BMW Group
With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.
In 2018, the BMW Group sold over 2,490,000 passenger vehicles and
more than 165,000 motorcycles worldwide. The profit before tax in the
financial year 2017 was € 10.655 billion on revenues amounting to
€ 98.678 billion. As of 31 December 2017, the BMW Group had a
workforce of 129,932 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.
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