BMW’s strategy for Russia
BMW plans to expand its business in Russia by opening more dealerships and boosting local production. Just like the Chinese market, demand for Beemers have increased in Russia, forcing the German Manufacturer to take necessary action. BMW is the third best selling premium brand in Russia behind Mercedes and Audi.
BMW Russia CEO Christian Kremer said the company would increase the number of dealers from 42 to 53 and increase local production by 40 percent to 6,300 cars a year.
" We need to be able to react in time to new market trends and be flexible enough to meet the requirements of Russian customers," Kremer said during a press conference in Moscow.
BMW has extended its production deal with local partner, Avtotor till 2010. The partnership began back in 1999 and it has been a flourishing one with 4,500 cars produced last year alone. The plant builds the popular X3, 3 series and 5 series cars.
According to figures from the Association of European Businesses in the Russian Federation (AEB), BMW sold 14,4008 cars in Russia in 2007, an increase of 55 percent from the previous year.
Source: auto news