BMW MINI cuts the price

BMW launched price war in small vehicle market just as 2007 moves on. In Chinese market, MINI Cooper for all models were adjusted for price 328,000 yuan, decreased as much as 52,000 yuan, which is the second launching high-profile price war since BMW entered Chinese market.

In January 2005, domesticised BMW 3 cut price with a maximum 100,000 yuan, which not only  maintained BMW in the Chinese market   growth above 50% for two consecutive years, it also withdrew the curtain of Chinese luxury car market price war.

Lorenz Glaab, director of MINI brand management said: "MINI won great favor from Chinese customers, in the future, BMW will introduce more exciting models to Chinese market." After several years of development, MINI Cooper's current basic service network has formed, the new MINI Cooper appeared in Beijing Auto Show last year will be sold in the second half of this year in China, with sales of  430 cars only in China in 2005, has soared to 1,057 last year.

Launching this price war, BMW has long-term strategic considerations. A notable characteristic of the world auto market pattern in 2006 is that, as SUV sales and profits decreased, small vehicles come back. Toyota Yaris and Honda FIT sales increased by 42%. These two small cars have a high configuration; the international market price is 15,000 U.S. dollars, which is quite the same with MINI Cooper.

This trend in China is no exception. Toyota has decided to new Yaris made by Guangzhou Toyota, after configuration changes, domestic prices of the new Yaris may be between 100,000 to 150,000 yuan. Dongfeng Nissan Note, which will be listed in March, directly targets the market share of FIT and POLO. Nanjing Fiat also said that the hot potato GrandPunto will be introduced into Chinese market this year. The front face of the car resembles famous Italian sports car Maserati, since its first launch in 1993, it had achieved 600 million sales. In addition, the new Ford Carnival, Mazda 2 and  Polo which appeared in the Beijing Auto Show and attracted public interests, are likely to be produced and sold in China.

BMW is clearly aware of this. In fulfillment of the BMW 3 and 5 domestication, the small car BMW 1 domestication is just around the corner. Between BMW 1 and 3 lies MINI Cooper, which will play its full potential in the market soon.

In addition, pressure from competitors prices also exhilarated MINI Cooper price plunging. The price of New Beetles as its major competitors is less than 300,000 yuan.