BMW well-prepared to meet demands of competitive Chinese market

In the face of a competitive and challenging Chinese auto market, the BMW Group has achieved consistent growth driven by clear strategies and robust product offerings. The German premium automaker is poised to introduce new products to solidify its leading position in the largest auto market.

In 2023, the BMW Group globally delivered a total of 2,555,341 new vehicles, ranging from MINI to Rolls-Royce, a 6.5 percent year-on-year growth.

Meanwhile, China－the largest single market for the BMW Group－witnessed the delivery of 824,932 new vehicles in 2023, including BMW and MINI brands, a 4.2 percent year-on-year growth.

The BMW Group has maintained its leadership in the Chinese luxury vehicle segment. Sales of BMW's pure electric vehicles were remarkable, with nearly 100,000 units delivered in 2023, serving a crucial pillar for the growth of the company. Its EV sales exceeded 10,000 units in November and December, respectively.

Sean Green, president and CEO of BMW Group Region China, said: "New competitors, products and technologies created an intensely competitive Chinese automotive market in 2023.

"The BMW Group retained its leading position in the Chinese premium segment, whilst delivering strong results in the luxury segments and successfully transitioning our product portfolio to intelligent, electric mobility."

BMW currently sells six EV models in China, with the BMW i3 and BMW iX3 being the two best-selling products.

The BMW i5 sedan is set to be officially launched this month, signifying the shift of the marque's most successful model in China into the era of intelligent electrification. It also completes BMW's EV lineup across all major market segments in China.

This year, BMW is to launch the all-electric MINI Cooper, the first electric three-door car of the MINI family. Manufactured in China, it will be supplied to global markets.

Over the next two to three years, BMW will prepare for the introduction of the Neue Klasse models. They will incorporate the sixth-generation eDrive electric powertrain system, innovative electronic and electrical technologies, and groundbreaking human-machine interaction features.

Upgraded R&D

BMW has established the largest and most comprehensive research and development network outside Germany in China, featuring more than 3,200 engineers. This network possesses end-to-end R&D capabilities, along with full-stack software development.

In 2023, the BMW Group enhanced its R&D capabilities in China, assisting swift and accurate alignment with future trends, a deeper understanding of Chinese preferences and increased responsiveness to consumer needs.

The Chinese R&D team has played a key role in the design, development, testing and validation of the upcoming i5, while contributing to crucial tasks related to BMW's Neue Klasse models.

In the realm of intelligent driving, BMW has granted a test license for vehicles with Level 3 autonomous driving functions on designated areas of highway in Shanghai, showing its commitment to promoting the business operation of higher level autonomous driving in China.

Intelligent production

The realization of luxury hinges on high-quality manufacturing. The Shenyang Production Base in Northeast China's Liaoning province, where the BMW Brilliance Automotive joint venture is located, implements the iFACTORY production strategy.

Each BMW model undergoes a prototype phase lasting up to a year, with artificial intelligence enhancing levels of quality control and consistency. Currently, around 100 AI technologies have been implemented at the Shenyang Production Base.

The construction of the Gen6 High-Voltage Battery Project at the Shenyang Production Base was officially completed in November.

With a total investment of 10 billion yuan ($1.39 billion), the project utilized advanced digital technologies like VR and AR in the planning and construction processes. It will also incorporate geothermal heating for the first time and adopt industry-leading low-carbon battery production standards.

BMW does not rely solely on EVs to reduce carbon emissions during driving. Instead, the company aims to achieve carbon and emission reductions across the industry chain.

All BMW EVs are produced using green electricity and the onboard power batteries are designed for closed-loop recycling of raw materials, contributing to resource conservation and minimizing environmental effects.

More than two-thirds of BMW dealerships in China have established battery recycling points. It is expected that all dealerships in the country will complete the setup by the end of this year.

Supporting service

The rapid growth of EVs has generated increased demand for charging infrastructure. As of the end of 2023, BMW's public charging network in China comprises more than 580,000 charging stations across 320 cities.

The BMW Supercharging Station project, launched in August, built 50 stations across 17 major cities by the end of 2023. The stations support up to 600 kilowatts of charging power and are open to all EV brands.

In late November, BMW announced a 50-50 joint venture with Mercedes-Benz Group to operate a charging network in China. The first charging stations are set to start operations in 2024.

The joint venture is expected to build a network of at least 1,000 high-power charging stations with around 7,000 high-power charging piles by the end of 2026.

Besides, there were 670 BMW i brand certified dealerships by the end of 2023 and all sales advisers have undergone online training related to EVs.

caoyingying@chinadaily.com.cn