BMW 2002 Sales In Asia Up 28%

SINGAPORE February 28, 2003; Tan Hwee Ann writing for Bloomberg reported that BMW said Asian sales rose 28 percent to a record last year, helped by gains in Japan and China. It expects to double regional sales in five years.

Sales rose to 78,527 cars last year. The carmaker's 7-Series, which competes with Mercedes-Benz's S-Class, and other BMW-brand vehicles accounted for 86 percent of those sales, with the Mini accounting for the rest. The company said it wants to sell 150,000 units in Asia in five years.

"It is a bold target," said Michael Ganal, a member of BMW's board of management. "We haven't said in any countries that we want to double sales in the next five years and we're saying that because of the strong growth potential here."

BMW, Volkswagen AG and DaimlerChrysler AG, are increasingly focusing on China, where auto sales rose 78 percent in January, and other Asian countries. BMW is awaiting approval from the Chinese government to start a manufacturing joint venture with Brilliance China Automotive Holdings Ltd.

The venture is expected to make 30,000 cars a year, with a target of 100,000 vehicles a year in a decade, the company said previously. Last month, BMW said it hopes to sign the agreement in the first quarter.

"We're still expecting to start production later in the year," said Ganal.

Lueder Paysen, the company's Senior Vice President for Asia, said China may displace Japan as the largest market in the region for BMW in five years. Chinese sales rose 62 percent to 6,677, compared with a 26 percent gain to 45,275 units in Japan.

BMW shares rose as much as 40 cents, or 1.7 percent, to 24.10 euros and were up 15 cents to 23.85 euros in Frankfurt at 10:55 a.m.

China's auto sales rose by 78 percent to 323,200 vehicles last month, China Daily reported on Feb. 24, citing the China Association of Automobile Manufacturers.

BMW also wants to benefit from the lower tariffs on cars in some Southeast Asian countries that are starting a free trade area this year. BMW plans to export cars from Thailand to Indonesia and vice versa starting this year.

In Malaysia, the company expects to announce details of its new retailing venture with Sime Darby Bhd. in the next few weeks. BMW wants to retake control of the wholesaling business, Malaysia's Sime Darby said earlier. BMW may also decide by then whether it will move components warehouses to Malaysia from Singapore, Paysen said.

Ganal said the company sold about 5,000 Z4 sports car in the U.S. since its introduction in October and is on track to meet its eventual annual sales target of 50,000 units.

The company sold 913,225 BMW-brand cars worldwide last year, an increase of 3.7 percent, and sales of Mini-brand vehicles rose almost six times to 144,119.

Chief Executive Officer Helmut Panke has said the automaker is aiming to overtake DaimlerChrysler AG's Mercedes-Benz to become the world's biggest luxury brand.