Bayerische Motoren Werke AG (BMW), the admired German automaker, has its eyes on the 2 million units milestone for 2020. In order to surpass the milestone, German auto giant is searching for possible locations to setup a new assembly plant in Brazil, anticipating sales growth in the markets of U.S., China and Europe. The upcoming plant in Brazil will provide boost to the German car maker for increasing its car production. In 2011, BMW sold 1.6 million units, which is expected to be raised to 2 million cars by 2020.
Norbert Reithofer, CEO, BMW mentioned, “BMW is headed in the right direction. BMW is on its way to achieve 8 per cent to 10 per cent profit in revenue from next year and with new car launches in the pipeline, this figure is going to increase gradually. From Jan – October period, BMW sold 1.19 million cars, which when compared to last year's figures, is an increase by 12.9 per cent.”
Over the past few years, the automaker has been growing at an aggressive rate in China. This reflects changing consumer behaviour of car buyers in China, a shift from mid-sized cars to premium sedans and SUVs. Grabbing growth opportunity with both hands, BMW has queued up car launches for China. Referring to the Chinese demand, Reithofer said, "Currently about 13 percent of Europe's car owners drive a vehicle from the compact class, just like in China. But while half of those in Europe would buy another compact the next time around, not even 5 percent of Chinese car owners would."
A factory in Brazil will balance the growth and avoid over-reliance on a single market for the German car making enterprise. The luxury car maker of BMW, Mini and Rolls-Royce vehicles is taking measures to maintain a lead over Volkswagen AG’s Audi and Daimler AG’s Mercedes-Benz, which are growing at a rapid pace.
