ABU DHABI, 11 May 2005 — German automaker BMW, riding on its impressive sales performance in the Gulf and Levant region, has launched the BMW 7 Series model update, BMW M5 and M6 at the Emirates Palace Hotel here early this week.
At the launching ceremony, Dr. Helmut Panke, chairman of the BMW’s board of management, said: “The Middle East, with 14 dealers in 13 countries, holds huge potential for the future and is playing a critical role in BMW’s growth and expansion strategy.”
He said: “There is a clear and comprehensive premium orientation in the Middle East — this is a region driven by a strong demand for premium products and premium services — there is an intensive desire for distinction and individualism. Therefore, this region is a real home for BMW Group products.”
Talking to Arab News, Dr. Panke said in terms of market dynamics, the region enjoys the “inverted pyramid” sales model where the best selling car is the BMW 7 Series, followed by the X5 and then the 5 Series.
BMW said the 1-Series helped group car sales rise 8.2 percent in the first quarter to a record 292,207 vehicles. Deliveries to customers during the quarter went up by 7.8 percent to 239, 287 units and Mini recorded an increase of 10.3 percent to 52, 694 units while Rolls-Royce Motors handed over 126 Phantoms to customers.
However, BMW car sales rose 9.7 percent in April to 111,285 units. Sales of its core BMW brand rose 9.1 percent to 92,984 units last month, while Mini sales jumped an even higher 13.4 percent to 18,245 cars.
BMW also delivered 56 Rolls-Royce Phantoms in April, down 16.4 percent from a year ago.
For the first four months, group car sales increased 8.6 percent to 403,521 units, led by dynamic growth in demand for hot new BMW models like the X3 mid-size offroader and the 1-Series hatchback.
“Since we launched the 7 Series in the Middle East, almost three and half years ago in November 2001, we have delivered a total of over 10,000 units,” Dr. Panke said.
“The current 7 Series has almost doubled its sales volume compared to its predecessor, within the same time period. For three consecutive years, since 2002, the flagship of the BMW brand has been the best-selling model for the company in the region,” Abu Dhabi Motors General Manager Arno Husslemann said.
The new 7 Series offers customers the widest model range of any luxury car manufacturer, all of which - except the 760Li - have new engines, updated to deliver more power and flexibility without compromising fuel economy.
“With the new 2005 products, we are setting out again this year on the path toward increasing retail of the BMW group and breaking another record,” Dr. Panke said, adding that “emerging markets of Iran, Iraq and Afghanistan would help realize the company’s growth projections of sales in the region.”
Sales are expected to grow four-fold in Iran. “We sold 350 cars in 204 and we are optimistic that sales will grow to 1,600 in 2005,” said Guenther Seemann, managing director of BMW Middle East.
Dr. Panke ruled out an assembly line in this region and also rejected any plans for a minivan.
However, BMW’s first-quarter pretax profit fell 4.6 percent as the weak dollar and the changeover in its key 3-Series car dragged on its core automotive result.
Earnings before taxes declined to 812 million euros ($1.05 billion), compared with an average Reuters poll estimate of 834 million and 851 million euros for the first quarter last year.
Dr. Panke also said the company was also serious about the Indian venture as “India is very important market for automobiles.” Senior executives were busy sorting out matters with the potential partners to set up a manufacturing base there, he added.
About China, he said, it was an important market for BMW where it may manufacture 30,000 units annually.
