To those who were anxiously looking into BMW’s marketing strategies on the Asian market, things have started to move again.

After the introduction of the new BMW 3 series GT on what is considered to be the world’s largest auto market, the officials make bold future predictions.

According to BMW China Trading’s president, Xu Zhijun, they are still having positive signals from the market, while the sales for luxury units are still high, even though they are currently registering a descending trend.

By a descendant trend we mean that the margins drop down with anything in between 1 and 2 %, in a context where BMW’s sales numbers are due to the Chinese market in percent of 15 to 20!

Therefore, despite the optimistic statements we have witnessed, the Chinese buyers are orienting themselves more and more towards cheaper and more compact cars, leaving aside the highly exclusive and expensive models.

Looking forward to see how will BMW handle these tendencies, we will focus, in the meantime, on the evolution of sales on other major markets as well.

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Marcus M.

http://www.bmwcoop.com

The post BMW growing bigger and bigger on China’s market appeared first on BMWCoop | BMW Blog, BMW News, BMW Reviews.

After South Korea made BMW’s life easier by passing certain laws to help reduce the price of European vehicles, another law in Asia might do the opposite.

China is set to implement a new law that will increase the taxes of luxury cars.

Said law will affect cars that wear a price tag of over 1.7 million yuan or 275.000 USD. All premium car makers stand to suffer losses because of this law, especially the German giants like BMW, Audi or Mercedes-Benz.

It’s a special concern for BMW as China at the moment is the biggest market in the world, having surpassed USA. The new law will make the affected vehicles, who already bear a high price tag, 20% more expensive. The silver lining in this matter might be the fact that the analysts estimated the affected vehicles are produced in lower numbers, 5000 units each year for this segment.

While the Chinese market as a whole won’t be that affected by this new law, BMW and other car makers are still hoping it won’t be implemented.

About Post Author

Marcus M.

http://www.bmwcoop.com

The post China might be taxing luxury cars appeared first on BMWCoop | BMW Blog, BMW News, BMW Reviews.