BMW plans a second plant in China, annual capacity 100,000 units

Shanghai. January 23 (Gasgoo.com) - BMW has finally made plans to build a second plant in China after nearly two years' investigation, 21st Century Business Herald reported today.

 

BMW AG and its partner in China, Brilliance Auto, have both agree to build a second joint venture plant,  which will have an annual capacity of 100,000 units. Not only BMW 3 and 5 series, but also BMW one series will be produced at the second plant.

 

The production site, however, has not been formally confirmed, but the newspaper said it will still be located at the northern city of Shenyang, where its first joint venture plant with Brilliance Auto is operating at capacity of 40,000 annually.

 

BMW AG has sold 51,588 vehicles (including both home-made and imported units) in Chinese market in 2007, up 42 percent from one year earlier. Currently BMW’s joint venture plant has an annual capacity of 41,000 units, but the joint venture sold 30,600 units in 2007, up 36 percent from one year earlier. BMW AG’s sales growth is increasingly challenged by its output capacity.

If BMW AG wants to boost its sales in China and better compete with its rival Audi, the automaker has no other choice than increase its output capacity.

Globally BMW AG sold 1.5 million vehicles last year, a record much higher than its competitor Audi and Mercedes-Benz. However in Chinese market, BMW AG sold only 51,588 vehicles, much less than Audi’s 100,888 units.

 

In terms of local production, Audi sold 73,404 locally produced Audi A6L vehicles and 19,764 Audi A4 vehicles in 2007. By contrast, Mercedes Benz sold only 17,647 locally made BMW 5 series and 12,953 BMW 3 series vehicles last year.