BMW predicts continued growth in Asia
BMW predicts continued growth in Asia
SINGAPORE (Reuters): Germany's BMW AG said on Thursday it expected double-digit growth in car sales in Asia to continue this year.
The luxury carmaker said sales of its cars in Asia rose 16 percent to 58,250 vehicles in 2000.
Luder Paysen, senior vice president of BMW Group sales division, told a news conference the company was very bullish on Asia in the medium and long term.
"This year, we see for our products a very positive trend," he said.
Paysen said he remained "very, very positive" on the China market this year after car sales in China, including Hong Kong, nearly doubled to about 3,750 units in 2000.
"We believe we can do much better (in China) this year," he said, adding that the company will expand its sales and service outlets in the country to 35 from 20.
BMW is also looking into the possibility of producing BMW cars in China, together with local partner Brilliance China Automotive Holdings Ltd., Paysen said.
He added that Brilliance and BMW had held exclusive talks with each other on a potential joint venture, and were in the process of submitting their proposal for a feasibility study to the Chinese authorities.
"The final decision on the feasibility study lies with the central government... the approval process could take half a year to one year, but we are very eager to enter the China market, and once we get the approval, we are prepared to enter immediately," Paysen said.
As for the rest of Asia, Paysen said the Indonesian and Philippine markets were likely to remain stagnant this year in light of their political and economic problems.
"We are going into the Philippines and Indonesia as a long- term strategy, so it's not really important that the environment is not so positive right now," he noted.
Its two new sales subsidiaries in Indonesia and Philippines would start operating on April 1, he added.
For Japan, Paysen said BMW would widen its dealer network to over 200 outlets in 2001, while its Thailand operations would perform better with the dealer network rising to 30 from the current 21 during the year.
South Korea would see 10 more showrooms and eight more service centers this year, he said.
Michael Ganal, a member of the BMW management board, said turnover in Asia rose to three billion euros (US$2.75 billion) in 2000 versus 2.5 billion euros in 1999.
"Asia currently accounts for about 7 percent of our total group sales volume and about nine percent of our total group turnover," he added.
BMW AG had reported total revenue of 35.35 billion euros in 2000, up nearly three percent from a year earlier.
Ganal said group profits in 2000 rose to an all-time high, but declined to provide any details, adding that the company would release its financial results in March.
He said BMW's investment spending in the years to come would comprise 7 percent of group revenues, while its research and development expenditure would account for about 6 percent of group revenues.