BMW Adapting to New Changes in China
Published By : 11 May 2015 | Published By : QYRESEARCH
As per industry sources, the sales boss at BMW commented on the market changes that are happening around the globe.
Though the sales show double digit growth for the last few years, the market in China has slowed and poses challenges for luxury car brands. The challenges, for instance, are dealers need to rely heavily on sales of used cars rather than selling new cars.
As per the sales head, regulations that are implemented time to time pose challenge for new car sales. Earlier in this year, Shenzhen accounted as the eight city in China to impose restriction on the number of registration plates that will be issued for new cars. A way for Chinese customers to adapt to regulations is to sell cars that are old and use whose registration plates for new vehicles.
In the same way, Chinese car dealers are also finding ways to adapt to the situation by creating a platform for sale of used cars. This is a reversed situation compared to past years in a mo for used cars business to flourish.
BMW, the luxury car brand from Europe is giving support to dealers to develop Finance and Insurance business.
The crackdown on corruption that is happening in China is put guard on some millionaires in the country who are keeping low profile.
The sales of BMW i3 in China is challenging also, mainly because of infrastructure problems. The government in China is offering good incentives, but the infrastructure does not support which is posing problem.
The scenario in China is not like in the U.S., where it is as simple as pulling into the driveway and gets plugged to the mains. In China, throwing down a 200 foot cable through the window from an apartment on 20th floor is not kid’s play.