BMW expects more growth in Russia this year
BMW the world`s largest premium car maker, can still maintain the 40 percent annual growth rate in Russia this year but volume increases will decelerate starting 2009.
"Under (favourable) circumstances we can still achieve the growth rate in recent years of 40 percent this year but we will not grow so rapidly in 2009 ," said Christian Kremer, president BMW Group Russia, adding sales could certainly rise 20 percent next year.
In the first seven months of 2008, BMW said it took the top spot among luxury competitors after volumes rose 33 percent to 10,596 vehicles. "We are able to be attractive for our consumers thanks to our Kaliningrad manufacturing facility," he said during the Moscow car show. Roughly a third of its volumes come from the local site, where it assembles BMW brand cars from knocked-down kits in order to avoid a 25 percent tariff on imported vehicles to Russia.
Volumes are still not high enough though to consider expanding its manufacturing footprint to include adding a body and paint shop. "We pass on a price advantage of up to 12 percent to our customers," he said, adding that German engineered BMWs made in Russia "is no reason for customers to decide against a purchase."
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