Luxury carmaker BMW announced Thursday a plan to take control of its China joint-venture, the first foreign automaker to take advantage of Beijing's new ownership rules for the sector. BMW will acquire a further 25 per cent stake in the venture with Brilliance China Automotive for 3.6 billion euros (USD 4.2 billion), the company said, bringing its stake to 75 per cent by 2022.
Foreign automakers have long been restricted to holding no more than a 50 per cent stake in their China operations, but Beijing decided to relax the ownership caps this year.
Earlier this year, BMW India said it wants to be a leader to grow the luxury car segment, and was not just targeting to be number one in terms of sales.
"When we came to India in 2007, there was hardly any market for luxury cars. We invested in products, dealer networks, and customer experiences to create a market. That is exactly what we are going to do now. We want to be the leader to grow the (luxury car) market. We are not talking about just being the number one. When we are talking about such a small market, being number one is not a great achievement," Vikram Pawah, president of BMW Group India, told DNA at the launch of its new dealer partner in Ahmedabad.
BMW India sales grew 25% in 2017, nearly double of the overall auto industry growth of 13-14%. In the first quarter of 2018, BMW sales rose 11%.
"Our biggest ever product offensive will start now. We showcased all our three brands – BMW, Mini and Motarrad – at the Auto Expo. We launched nine products at the Expo, and we also showcased seven more products that will be launched this year. We are not just creating new segments, but are redefining them," said Pawah.
In all, BMW India offers 36 models at present, of which 27 models are imported, while the rest are manufactured at its Chennai plant. Pawah said that over 95% of the cars they sell in India are manufactured locally.
The BMW chief also said that an increasing number of customers are now opting for petrol cars over diesel-powered ones.
