China’s decreasing market for BMW isn’t all bad news for the
German car manufacturer, as Big
Motoring World reviews.
Reallocation
BMW say they have reallocated vehicles which were initially
intended for China and other emerging markets. They have been moved to
prospering markets such as the USA and UK, which will increase competitiveness
and higher incentives in our shores.
It’s particularly good for the USA which currently has a
strong dollar, creating attractive marketing conditions, as China’s car market
slows – last year the country accounted for 22% of BMW’s overall sales. This
won’t necessarily have a negative effect on the manufacturer as a whole.
Growth
Chinese sales rose in the second quarter of 2015 and sales
for BMW are expected to rise in the second half of this year, recouping some of
the loss from lower sales earlier this year.
BMW were prepared for the slow start to this year, slowing
Asian production at the back end of last year which enabled them to focus on
the European market and America – countries where sales continue to strengthen.
“Competition is increasing in the US. The strong dollar is
creating attractive market conditions,” Friedrich Eichiner, chief financial
officer, told reporters. “Every manufacturer wants a piece of the cake.” And
BMW are set to share a large slice of the cake with an increased market share
and output in the US.
The German premium carmaker attributed the decline in sales
to expenses for new product launches and a higher volume of compact cars sold —
which have lower margins. Net profit for BMW was €1.75bn.
Big Motoring World
Big Motoring
World is the largest independent seller of used BMWs and Mercedes-Benz
in the UK. June’s figures showed the highest
ever sales in 20 years of business. Based in London and Kent, Big
Motoring World hold over 1000 cars so we are sure to have the perfect car for
you.
No comments:
Post a Comment