Quote:
Originally Posted by RPM90
The Chinese market has huge potential for all manufactures, and I can see BMW wants as much market share as they can get, and of course they should.
I just don't want to see a neglect for the base/core of BMW's existing customers, with the core models that do and have done very well for them.
Personally, I REALLY wanted a new replacement for my 135i, either a new coupe or a sedan, but it didn't happen, and it's long overdue.
I'm no expert clearly, but to me I would want a new and/or niche model to create NEW sales, bring in new customers, and build sales numbers, rather than cannibalize one models sales for a new model.
"On top of" sales shows the benefit of a new model rather than "instead of" sales.
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Unfortunately the market taste in China is very conservative. BMW's strategy there is local manufacturing for it's core models, with heavy design localisation. Audi is the current market leader there as it was the 1st to do that, & they managed to get into the government vehicle procurement list, meaning officials spending government money can only buy PRC-made Audis if they want sth premium. BMW tried & failed to get into that list earlier in the year.
Wht u said abt cannibilisation is entirely true. It hurts profitability as well as brand image.