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Automobile industry

BMW Expands in China, Partners with Brilliance Auto to Produce Electric Vehicles

Strategic Insights

— 2 min read

BMW, a German luxury car titan, is accelerating its expansion in China, the world's largest auto market. The company has partnered with China's Brilliance Auto to produce electric vehicles (EVs) and invest CNY 5 billion in a new factory in Shenyang, Liaoning province. This move is part of BMW's strategy to capture a larger share of the growing Chinese market and reduce its dependence on European sales.

Key Takeaways:

  • BMW plans to produce electric vehicles with Brilliance Auto, with their joint new energy vehicles expected to hit the market in the following years.
  • BMW's cooperation with BYD Co., Ltd. is limited to the field of electric vehicles, whereas its rival, Daimler AG, has signed a Memorandum of Understanding (MoU) with BYD for joint R&D of EVs and the launch of a new EV brand in 2015.
  • BMW has accelerated its expansion in China, with sales in the first half of 2010 reaching over 75,000 vehicles, making China its third-largest market worldwide.
  • The new factory in Shenyang, scheduled to begin operations in 2012, will have an annual production capacity of 300,000 vehicles, surpassing BMW's current annual production capacity of 100,000 vehicles in China.
  • BMW's chairman of BMW Brilliance Automotive Ltd., Wu Xiao'an, stated that the new factory will initially have an annual production capacity of 100,000 vehicles, with a planned investment of CNY 5 billion, jointly contributed by BMW and Brilliance Auto.
  • The BMW brand contributed approximately 71,000 vehicles, while the MINI brand sold roughly 4,400 vehicles in the first half of 2010 in Mainland China.

Statistics:

  • BMW's sales volume in the first half of 2010 in Mainland China reached over 75,000 vehicles.
  • 71,000 of these sales were attributed to the BMW brand, while approximately 4,400 vehicles were sold under the MINI brand.
  • BMW's monthly sales volume in China in the first half of 2010 averaged over 10,000 vehicles.
  • China has become BMW's third-largest market worldwide, surpassing the UK for the first time.
  • The new factory in Shenyang will have a planned annual production capacity of 300,000 vehicles, while the first BMW factory in China has a production capacity of 100,000 vehicles per year.

Sources:

  • SinoCast Daily Business Beat via COMTEX, "Shenning product bars may not give Bran nice: experts note once-have Zarship victorias bands so shiny", Jul 16, 2010.
  • SinoCast Daily Business Beat via COMTEX, "Benz Sign Noncompany/MO Relation from Vice Tran", Mar 2010.
  • BMW China, "BMW Group China Sales Figures, First Half 2010".

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