Shi Dengke: "BMW China's supply will increase significantly in 2011"

The Chinese market in 2010 was unusual for BMW. This year, BMW's sales growth in the Chinese market will exceed 80%, which is 50 percentage points higher than the 30% increase in 2009. This kind of achievement made Dr. Deng Ke, President and CEO of BMW Greater China smile. However, what counts in his eyes is not just numbers.

This year, what measures will BMW introduce to ease the shortage of production capacity? Will the high-end car market continue its development momentum in 2011? Recently, Dr. Dengke received an exclusive interview with this reporter on the above issues.

"21st Century": Do you hope BMW's breakthrough in the Chinese market in 2011?

Zeng Dengke: This year, the growth rate of China's high-end car market may not be as fast as last year, because the base number is already large, but it will continue its vigorous growth trend, and the market will still maintain a healthy development momentum.

At the same time, we have seen that the government has recently announced the termination of some irritating incentive measures for the auto market, although it will not have a direct impact on the sales of the high-end car market, but it will not affect the consumer psychology of the entire auto market. This is our concern. However, in the medium term, we are still full of confidence in the Chinese auto market.

"21st Century": Inadequate production capacity, has been plagued BMW's progress in China, the new BMW plant was put into operation in 2012, then this year will BMW take measures to ease the production capacity tension?

Zeng Dengke: About a year or two ago, we decided to continue to increase production capacity. This year, we will see a positive effect. BMW will release more production capacity in China. For example, the new BMW 5 Series long-wheelbase version will increase its supply this year. However, I must admit that this year's tight supply of BMW products still exists.

Product supply conditions are affected by the market environment. When the global financial crisis broke out, BMW decided to reverse the trend and decided to increase investment in China and build a new factory. At that time, no one expected that China’s strong immunity could evade the impact of the financial crisis, and no one expected the world economy. The recovery momentum will come so fast that, despite the correct judgments we made at the time, the development momentum of the Chinese market still exceeds expectations. We can only do our best to ease the strained production capacity by all means. I believe this year’s The situation will be better than last year.

"21st Century": You just mentioned that the new BMW 5 Series Li will have a larger supply in 2011. Does this mean that the supply of some BMW 3 Series will be sacrificed?

SHI Dengke: The market segment where the BMW 5 Series is located is the largest segment of the entire high-end car market. This is why all manufacturers are doing their best to “kill” in this area. Many car brands are specifically targeting this field. The launch of a long wheelbase version in China, so the new BMW 5 Series long wheelbase version has the largest capacity space in the Shenyang plant. It is the focal point and production center of the entire plant because it is tailor-made for the Chinese market.

At the same time, the output of the BMW 3 Series is also gradually increasing. I cannot provide you with accurate figures, but it is certain that this year's increase in production will be considerable, which will be a considerable increase compared to last year.

"21st Century": With regard to capacity increase, how much will BMW increase this year?

Shi Dengke: Specific figures are not disclosed. However, for an important model such as the new BMW 5 Series Li, its capacity increase will certainly not be the concept of 1000~2000 vehicles. It will have a significant increase.

"21st Century": In terms of imported cars, how will BMW China coordinate with the headquarters this year and strive for more products to be introduced into China?

Zeng Dengke: The speed with which most imported BMW models are introduced into China is fully synchronized with the global, and some models are even ahead of other markets, so the pace of introduction of models is no longer a problem. Judging from past effects, the Chinese market will often surprise us.

There are already two trends in the automotive industry today: one is that Chinese consumers’ preferences will increasingly affect the development of vehicle models for global automotive brands; the other is that localized research and development will continue to evolve, specifically for the Chinese market. Tailor-made models will be more and more.

"21st Century": We have noticed that in the second half of this year, BMW, Audi, and Mercedes-Benz have successively introduced A-Class products into China. What do you think is the reason for the decline in high-end car brand products?

Shi Dengke: The introduction of A-class cars is a natural trend. With the expansion of the middle class in China, more and more consumers have the ability and desire to purchase high-end brand cars. In addition, as the city's traffic congestion continues to increase, more and more people are beginning to like high-quality small cars. So I think the increase in A-class cars will expand the customer base of high-end models.