BMW sales in Asia's emerging markets jump 51% in first half

BMW deliveries in the emerging markets of Asia (excluding Japan) surged
51% to 10,549 cars in the first half of 2000 compared with the same
period last year. In Asia as a whole, BMW sales were 17% up to 27,476.
All three core models of the German luxury car marque registered
positive figures in Asia with the flagship 7 Series continuing its
strong first quarter performance by scoring the highest percentage
increase. Registrations of the 3, 5 and 7 Series were up by 19% (to
18,045), 5% (to 7,002) and 34% (to 2,429) respectively. "These
positive figures by BMW in Asia reflect the dynamic economic environment
and the fact that BMW is participating strongly in this growth. The 51%
jump in BMW sales in the emerging markets justifies our strategy to
continue investing during the downturn so that we can fully benefit
when the economies recover", said Mr Lüder Paysen, Director
of Overseas Sales, BMW Group. Among investments made during the last
few years, the US$26 million BMW Manufacturing (Thailand) plant was
opened in May this year. BMW's first wholly-owned manufacturing
facility in Asia is located in Rayong Province on the Eastern seaboard
of the Kingdom. The plant has a capacity to make 10,000 cars a year and
has started production of the new 3 Series sedan for the domestic
market. The BMW 3 Series was noted by the Economist Intelligence Unit
in a recent study on ASEAN's car market, as being the most successful
car among European and US carmakers, reflecting BMW's success at
tapping into the region's potential. From a list of ASEAN's top 20
best-selling cars, the 3 Series was the only luxury car and the only
model that was not from Japan, Korea or Malaysia. BMW also scored well
in other areas. For example, according to a poll conducted by Reader's
Digest in Asia, BMW is the top car brand in Hong Kong, Singapore,
Taiwan and Thailand, and also clinched the top overall car brand award
for Asia. The poll evaluated each brand on quality, value, image,
trustworthiness and the understanding of customer needs. This is the
second Pan-Asian award given to BMW this year - BMW ranked No.1 in the
Far Eastern Economic Review's most recent survey of "High Quality
Services/Products - Multinational Companies". Sales by markets
Sales in Japan, BMW's largest market in Asia, edged up 2% to 16,927
units. The entry-level 3 Series rose 6% (to 6,296), but the 5 and 7
Series fell slightly by 8% (to 3,682) and 4% (to 993) respectively.
Excluding the mature and sluggish economy of Japan, BMW's performance in
the other Asian markets rose 51% on the back of higher sales for all
BMW models. Deliveries of the 3, 5 and 7 Series in these countries were
up by 61% (to 5,793), 27% (to 3,320) and 86% (to 1,436) respectively.
Among all the markets, Indonesia recorded the highest percentage rise of
733%. From sales of a mere 126 units in the first half last year,
deliveries this half year were just over 1,000 BMW cars. The decision
to start local assembly of the new 3 Series sedan last year even before
the Presidential elections, are clearly paying off now. After
Indonesia, the other two out-performers this year were Korea which saw a
150% sales increase (to 781) and China (excluding Hong Kong) where
deliveries rose 130% (to 738). In Korea, efforts to improve the
perception of foreign cars received a boost with President Kim
Dae-jung's message of support for the Import Motor Show and the
attendence of the Prime Minister and Minister of Finance and Economy at
the motor show. In China, where more 7 Series are sold than 3 and 5
Series put together, 515 units of the flagship 7 Series were sold in
the first half of 2000 - an increase of 185%. In addition, one out of
every five 7 Series destined for Asia (including Japan) is delivered to
a customer in mainland China. BMW also sucessfully participated in Auto
China 2000, with the largest exhibition among all luxury cars there.
Auto China is the country's largest motor show held once every two
years. Elsewhere in Asia, BMW chalked up excellent sales in Singapore
(up 46% to 1,134), Hong Kong (up 38% to 863), Malaysia (up 36% to 925)
and Taiwan (up 23% to 3,492). BMW Thailand, the German carmakers's
newest sales subsidiary in Asia, delivered 1,126 cars (up 25%) in the
January to June 2000 period. At the Bangkok International Motor Show
held earlier in the year, more than 400 orders for the new 3 Series
sedan which is being assembled at BMW Manufacturing (Thailand), were
received. In the second half of the year, BMW expects another strong
showing especially in the emerging markets, barring unforseen events.
The launch of the revolutionary BMW X5 SAV (Sport Activity Vehicle),
intensive marketing activities and new 6-cylinder engines, promise to
keep the BMW brand fresh and attractive to consumers.