BMW Brilliance's Senior Vice President is optimistic about Chinese luxury car market
- Source: Gasgoo
- [09:14 January 14 2011]
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When asked about what influence Beijing purchase restriction laws have on BMW Brilliance, Dr. Kirchert said that, although it is too early to make any predictions, the company still has a fairly optimistic mindset. Currently the total number of vehicles in Beijing is approxiately five million units with an automobile replacement rate of 10 percent. According to Dr. Kirchert, since most owners wishing to replace their automobile tend to set their sights high, sales in luxury vehicles as a whole are relatively unaffected by purchase restriction laws.
In response to questions regarding the development of the luxury cars in China, Dr. Kirchert answered that although market growth will not be as extraordinarily high as it was in the past year (which saw a 70 percent increase in luxury car sales and a 30 percent increase in total market sales), he still expects steady growth in luxury car sales of 20-30 percent. He noted that Chinese luxury car manufacturers, when compared with their American and European counterparts, make up a very small proportion of the automobile market (5 percent-7 percent compared to 10-50 percent,) consequently, this segment of the market has a great deal of space for growth. He expects that in three to five years Chinese luxury automobile manufacturers' market share will increase to 10 percent.
Dr. Kirchert finished the interview by introducing the company's new BMW Concept 5-series ActiveHybrid, slated to be showcased in China later this year. He stated that although the vehicle will wear the BMW label, the core technology and intellectual rights will be shared by both BMW and Brilliance Auto. Furthermore, BMW will try its best to use domestic parts in producing the vehicle.
