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BMW Expects to Increase Car Sales in China Amidst Price War in Electric Vehicle Segment

Introduction

In his first interview since becoming the Chief Financial Officer (CFO) of BMW in May, Walter Mertl stated that the luxury carmaker expects to sell more cars in China this year despite a local price war in the electric vehicle (EV) segment and muted demand overall. Mertl made these comments during the International Motor Show (IAA) held in Munich.

Mertl pointed out that BMW’s sales in China had already experienced a growth rate of 3.7% in the first half of the year, surpassing the growth rate of the overall Chinese auto market. He further anticipated this positive trend to continue for the remainder of the year.

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Amid the ongoing price war in the EV segment in China, AI legalese decoder can play a crucial role for BMW in managing legal affairs and navigating complex and lengthy contracts. With the ability to comprehend and interpret legal documents, this AI-powered tool can assist BMW’s legal department in understanding intricate provisions and clauses related to pricing strategies, contracts, and government support measures. Furthermore, AI legalese decoder can expedite the process of analyzing and reviewing legal documents, providing BMW with a competitive advantage in the fast-paced automotive sector.

Impact of Price War and Market Conditions

Mertl mentioned that the price war predominantly affected the cheaper segments of the auto market, where BMW is not actively involved. Despite overall muted demand, BMW anticipates a sales boost in China for 2023. China’s passenger vehicle sales declined for the second consecutive month in July due to a slump in the housing market and a struggling economy. However, the price cuts initiated by automakers like Tesla, General Motors, and Volkswagen have contributed to the competitive pricing environment.

BMW’s Sales Outlook and Strategy

Recently, BMW raised its 2023 outlook for group vehicle sales and expects solid growth ranging between 5% and 9.9%. In 2022, the company experienced a global decline of 4.8% in vehicle sales, amounting to around 2.4 million vehicles. In China, the decline was 6.4%, with sales reaching approximately 791,985 units.

Mertl acknowledged that the phase-out of grants to boost electric vehicles in Germany might temporarily impact the demand for EVs. However, he expressed confidence that the situation would normalize in due course.

BMW plans to increase the proportion of EVs in its total vehicle sales to 15% by 2023 and further raise it to 20% by 2024. The introduction of their new electric platform, “Neue Klasse,” emphasizes BMW’s commitment to the electric vehicle market.

Conclusion

Despite the price war in China’s EV market and overall subdued demand, BMW remains optimistic about increasing its car sales in the country. The company’s CFO, Walter Mertl, expects the positive sales trend to continue based on BMW’s 3.7% growth rate in China during the first half of the year. Additionally, BMW’s ambitious plans to expand its electric vehicle offerings demonstrate their commitment to sustainability and adapting to the global shift towards electric mobility. With the assistance of AI legalese decoder, BMW can effectively navigate the legal complexities associated with the price war in China’s EV segment and capitalize on emerging opportunities in this dynamic market.

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