New BMW releases appeal to younger generation

Karsten Engel, president and CEO, BMW Group Region China, shares his insights during the ongoing Chengdu Motor Show. Behind him is the new BMW i3 Lifestyle. Photos Provided to China Daily

Backed by its optimism in the Chinese market, premium carmaker BMW released fuel-efficient versions of its vehicles at the ongoing Chengdu Motor Show in the capital of Sichuan province.

BMW's all-new X6 xDrive28i, new X5 xDrive28i, i3 Lifestyle and 4 series 2015 special edition entered the Chinese market boasting innovative technologies for more driving pleasure with lower fuel consumption.

Karsten Engel, president and CEO, BMW Group Region China, said: "Western China has become the most vigorous market with sustainable growth in the past several years. BMW's sales volume in 2014 was about 20 times more compared with that of 10 years before, but more than 60 times growth was realized in western China.

"The western Chinese market is still very dynamic, while the overall Chinese market has set foot into the new normal. Besides Chengdu, Kunming is becoming more and more important, while other cities are also developing speedily," he added.

Data showed the nation's vehicle registration grew 12.9 percent last year to 15.9 million, while the amount in Sichuan nearly doubled that with a year-on-year growth of 25.4 percent. The growth in adjacent Chongqing municipality was 38.1 percent.

Engel shared his vision on the Chinese luxury passenger car market and said he foresees a bounce back, possibly next year.

"I have confidence in BMW that the sales volume this year will still be higher than that of 2014. I foresaw this slowdown in market growth, but it is still growing. It is not a crisis, but a normal dip in the growth speed," he said.

"In the long term, I'm extremely positive toward the Chinese market and the investment in plants is continuing. Currently, the premium registration number growth is higher than the general market. And the middle-income family amount will triple in the future. There will be big growth potential in the premium market," Engel said.

The company has made changes to cope with the new normal in the automotive market: adjusting the supply by reducing imports and slowing down production in plants; helping dealers by reducing their costs and changing key performance indexes; diversifying the business by enhancing after-sales services and expanding the used car and financing business.

New SAV and SAC models

Of the four newly launched cars, the all-new X6 xDrive28i and the new X5 xDrive28i are models of sports activity coupe, known as SAC, and sports activity vehicle, known as SAV, and the carmaker said it expects them to consolidate its leading position in the promising SUV segment.

The SUV sales surged by 44.3 percent year-on-year during the first seven months to 3.05 million vehicles, in sharp contrast to the 7.58 percent drop in the sedan segment, despite 6.48 million sedans being sold.

Both of the xDrive28i models are powered by a four-cylinder 2-liter TwinPower Turbo engine featuring twin-scroll charging, high precision injection and BMW-patented Valvetronic fully variable valve control. Geared up by an 8-speed automatic transmission, the award-winning engine boasts a peak torque of 350 Nm, equivalent to a six-cylinder natural aspirated engine.

Engel said: "The all-new X6 xDrive28i and new X5 xDrive28i are tailored for Chinese customers, as the downsizing trend in the market requires more efficient models.

"Our Chinese customers are now more and more concerned about the environment and sustainable development, so these models employ TwinPower Turbo technology without losing dynamics. They are also ofered with rich configuration options and connectivity functions."

The engine features the latest innovative highlights of the BMW Efficient Dynamics strategy and the result is a 2.0-liter engine with torque upgrade and exceptionally low fuel consumption and emissions.

The trend-leading engine is calibrated for excellence in both performance and efficiency.

The X5 xDrive28i could reach 100 km/h from a standstill in 7.5 seconds, but the fuel consumption stays below 9.0 liters for every 100 km, according to the company.

The xDrive all-wheel drive system ensures the best possible traction, enhancing its agility and keeping it on track, even on fast bends.

Under normal circumstances, it distributes driving power between the front and rear axles in a 40:60 ratio and adjusts variably within 0.1 of a second when the road surface or overall driving conditions change.

The premium brand has decked out the cars with more smart functions, including the ConnectedDrive Store, real-time traffic information, iDrive touch controller with a 10.2-inch display, color head-up display, Driving Assistant Plus, Lane Departure Warning, Approach Warning with City Brake Activation, Active Cruise Control with a Stop&Go function and a traffic jam assistant.

Regarding the positioning strategy of the new models, Engel said the core market is the future, namely the younger generation and localization.

He said: "We need a very strong brand, so BMW will focus on future development, will communicate closely with the younger generation of customers and continue localization in China.

"These two models are developed for younger people in China, so they are very dynamic and more affordable than the versions launched earlier."

Engel said the younger generations of the 1980s and '90s are becoming the nation's mainstream consumers and that BMW is expanding to cover these younger segments.

A specialized team of experts conducted research during the past two years that examined the BMW brand and how it should develop in the future.

The team queried more than 3,000 BMW owners, industry specialists and experts.

The 15-monthlong project found changes in how high-end consumers think, which helped the team redefine the brand image with a more appealing personality.

haoyan@chinadaily.com.cn