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