| In Beijing: There is race raging on between German | | | | started its China production in the early 1990s and from |
| luxury-car maker BMW and Audi and it’s not on | | | | then on has started dominating the fleet serving |
| the road but more of a contest on who will get the | | | | high-ranking government officials with its hot-selling A6 |
| approval of the high-ranking Chinese government | | | | sedans. This has helped Audi in boosting its sales in |
| officials. | | | | China since elite consumers were finally been able to |
| BMW is hoping that it will be chosen over its rival Audi. | | | | notice the Audi brand. |
| To accomplish such objective the Munich-based | | | | Audi’s sales in mainland China reached 80,808 units |
| company is currently engaging in talks with regulators | | | | last year an increase of about 39% from 2005. On the |
| to include its vehicles on the government’s shopping | | | | other hand BMW’s mainland sales increase by 51 |
| list said Christoph Stark, president and chief executive | | | | percent to 36,357 units including 22,550 locally made 3 |
| officer of BMW Group China in an interview with China | | | | and 5 series sedans. Mercedes-Benz’s was also |
| Daily. Stark also added, "The government purchase | | | | able to sell 21,000 cars on mainland China and in Hong |
| sector is important for us and we have the confidence | | | | Kong last year and obtained an increase of 32%. It |
| to enter it. We'll try to explore the possibility of more | | | | also started the assembling of its E-class sedans at |
| customers, such as government institutions and | | | | the beginning of the year in Beijing. |
| state-owned companies.” | | | | According to Alfred Rupp, CEO of BMW’s venture |
| Stark made such remarks after another German | | | | with Brilliance said that the ventures has helped it |
| luxury car maker Mercedes-Benz’s China-made | | | | annual production to increase capacity of up to 41,000 |
| sedans make it to the government purchasing list this | | | | units from 30,000 to meet the growing demand. "We |
| month. It should be noted that it was in the year 2003 | | | | can raise capacity further by improving processes." |
| that BMW began assembling its 3 and 5 series sedans | | | | He also said that the venture will find 80 first-tier |
| in partnership with Brilliance China Auto in northeastern | | | | suppliers in China by the end of this year up from the |
| city of Shenyang. Most of its buyers are private | | | | present 50. Procurement of locally made spare parts |
| Chinese customers. | | | | will also be increased to 3 billion yuan from the 2 billion |
| Last November, the BMW China launched its new 5 | | | | yuan in 2006. |
| series sedans that measured 14 centimeters longer | | | | Stark is also denying reports that are stating that the |
| than the previous models and are specially | | | | German car maker is searching for a second partner |
| manufactured for the China market. Such move was | | | | in China. He said, "BMW and Brilliance are satisfied with |
| part of BMW’s efforts to penetrate into the | | | | the venture's performance." The luxury car sales in |
| government-purchase sector. BMW is not the only | | | | China last year reach 160,000 units which is less than 4 |
| exploring this fast-growing segment other foreign and | | | | percent of the entire nation’s passenger car sales. |
| domestic car makers are also riding on the | | | | Analysts predict sales to increase rapidly as the |
| bandwagon. Basing on the gathered industry data, | | | | number of rich buyers in China also increases. Sales of |
| governments at all levels in China last year spent 70 | | | | China-made vehicles have risen to 25 percent to 7.22 |
| billion yuan or $9 billion USD in buying vehicles. | | | | million units last year including the 4.2 million passenger |
| Audi--Volkswagen’s luxury unit and recipient of | | | | cars. |
| quality auto components like VW spark plugs—has | | | | |