BMW aims to dominate Asian luxury car market
9 December 2004, JOHOR - German carmaker BMW has launched an aggressive marketing strategy in Asia aimed at beating all competitors in tapping into the region's vast growth potential.
9 December 2004
JOHOR - German carmaker BMW has launched an aggressive marketing strategy in Asia aimed at beating all competitors in tapping into the region's vast growth potential.
The luxury carmaker unveiled on Thursday it's latest move at increasing it's presence in Asia with the opening of a new Parts Distribution Centre in Malaysia's southern Port of Tanjung Pelepas (PTP) in Johor state.
The centre, with a capacity of 15,000 square metres for warehousing expandable to 18,000 square metres, began operating in August and currently serves 19 markets in the Asia Pacific region.
"Asia is the most economically dynamic growth region in the world so it's easy to see why we have set our sights on the market here," said BMW manager for Corporate Affairs in Asia, Ramesh Divyanathan.
"We were one of the first in this industry to implement an aggressive Asian strategy, and we have invested heavily in Asia to tap into it's growth," Divyanathan told Deutsche Presse-Agentur dpa, following the launch.
Managing Director for BMW Malaysia, Wolfgang Schlimme, said total investments for the new centre amount to more than EUR 8 million, adding that the company was confident the centre would help boost the region's car sales in coming years.
BMW has announced goals to increase sales in Asia in five years from 78,000 units in 2002 to 150,000 units by 2008.
In the January-to-August period this year, the world's second-largest luxury carmaker sold around 54,000 units, including the Mini, in Asia. This is up 8 percent from the same period last year.
"We have seen tremendous growth in Asia, in terms of our sales volumes, especially in the past five years" said Schlimme.
Fellow German carmakers Volkswagen (VW) and Audi have both announced plans to strengthen their presence in the region, with both companies planning to focus it's strategies on Southeast Asia.
However, Schlimme expressed confidence that BMW would remain ahead of other luxury carmakers, adding that the company has already established itself firmly in Asia.
BMW's growth in Asia also includes an active presence in China, where it has begun delivery of cars produced at its first joint-venture factory in the country.
The group increased sales by 110 percent to 8,600 units in China during the first eight months of the year.
Subject: German news