BMW�s Chinese investments are paying off in their domestic partnership with local Chinese auto manufacturers as profits, stocks and sales continue to grow. Profits from BMW�s partner, the Brilliance Automotive Group, experienced a 52% increase in demand for their new and past models in China this year alone. Experts estimate that the demand for new cars as well as past models will continue to grow as China remains the world�s largest market for automobiles.
The Brilliance China Automotive Holdings Ltd. Had a net income increase of $332 million dollars, or 2.03 billion yuan, up from the previously reported 1.33 billion yuan. The Hong Kong stock exchange has been the meeting point for industry leaders eagerly awaiting news of the successes of foreign and domestic Chinese automotive market happenings.
BMW looks to be poised to make China its biggest buyer of its automobiles, most predominantly the latest 5-series sedan which has been met with much industry and consumer excitement in China. Other BMW car series are popular amongst Chinese drivers, too.
Although BMW and its partners in China are currently not at the top of the Chinese industry- that accomplishment goes to Audi- they have experienced greater growth year on year according to recent records. This increasingly high level of revenue and growth has BMW and Brilliance China Automotive Holdings Ltd. in good position to take the lead from Audi in the Chinese market, also allowing the Chinese auto market to become a bigger arena for sales than the United States.
The joint venture partnership between BMW and Brilliance China Automotive Holdings Ltd. has seen continued success in the Chinese market with existing BMW models like the 3 and 5-series. Their new electric car model (called the Zinoro) will be debuted and sold by the end of 2014 and the hype around this new vehicle has continued to increase both abroad and in China. BMW has high hopes for the success of the Zinoro in the Chinese market as it fits perfectly within the new environmental laws that the Chinese government has put in place to increase fuel efficiency in new vehicles to decrease the pollution problem.
The Brilliance Automotive Group in partnership with BMW is planning to expand their production facilities as well in order to keep up with the demand the Chinese market has for their cars. The demand for cars went up 31% in 2013 and has increased in the first few months of 2014 making this move smart and economical for the company. Their existing production facilities will be used to build the much anticipated hybrid model of the 5-series sedan, which will theoretically hit the market sometime in the year 2015.
Domestic Chinese production of BMW cars will also be expanded to include a greater variety of models that will be available in China in coming years; in cooperation with BMW and the Brilliance Automotive Group the models will be available at an increasing number of dealerships around the country.
The world is ready and waiting to see where BMW will succeed next.
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