BMW and other top luxury automobile manufacturers seek to maintain sustainable sales growth in China

Gasgoo.com (Shanghai November 20) - The big three of Audi, BMW and Mercedes-Benz have long since established that they are the top dogs in the Chinese luxury automobile market. Between the three of them, they hold a combined market share of approximately 80 percent. The question now to be seen is whether or not they are capable of maintaining sustainable sales growth.

On this point, BMW AG Board Chairman and CEO Norbert Reithofer (pictured) stated that he expects sales growth in the Chinese automobile market to top ten percent this year. Dr. Reithofer believes that the Chinese automobile market is approaching a state of normalization that will put in line with the US market, and that the astronomical sales growth rates of the past few years will not appear again.

Dr. Reithofer's statement is a subtle hint that BMW has already begun noticing the current state of the Chinese market and is making the proper adjustments to deal with lower growth rates in the future.

Brilliance BMW President Kang Siyuan's statement echo those sentiments. In an interview with the China Business News, he stated that "the two terms 'sustainable development' and 'innovation' will redefine the luxury automobile market." He added that these two concepts cannot be separated, explaining that "only by rethinking our entire industry process and values can we ensure that our company will continue to develop."

China has long since become the biggest market for Audi, BMW and Mercedes-Benz. Therefore, it is not surprising that the three manufacturers have set their sights on developing strong client and dealership relations. On that note, BMW has already established a number of corporate social responsibility programs, such as the BMW Warm Heart Fund and the BMW China Culture Journey. BMW hopes that through these programs it can strengthen its brand image in the minds of consumers in the country. The manufacturer has also established a fully independent R&D center in Shanghai, which will look to design products and services tailored to the needs of Chinese consumers.

It is clear to see that Audi, BMW and Mercedes-Benz are looking far beyond domestic production to achieve sustainable growth in the country. Whether or not this strategy will keep them at the forefront of the luxury automobile market remains to be seen.