73 billion yuan – this is the latest total investment in Shenyang announced by BMW Brilliance.
From the tentative rental of production lines in 2003 to the investment and construction of factories in 2010; From the construction of a single production base to the gathering of R & D center, powertrain factory and power battery center in Shenyang, what makes BMW invest all the way? At the beginning of the Spring Festival, the reporter walked into brilliance BMW to find out.
one of every three vehicles is delivered to China
Walking into the main building of BMW Brilliance Tiexi factory, you can see a suspended mobile production line. New cars of different models and colors are coming one after another. They are ready to enter the general assembly workshop to complete vehicle assembly. A new car goes offline every 55 seconds or so.
In the workshop, the huge orange mechanical arm twists its body and accurately cooperates to complete the grasping and welding of parts and components; Intelligent material vehicles automatically and orderly transport all kinds of parts… “China is the largest market of BMW Group.” Gao Le, President and CEO of BMW Group Greater China, said.
According to the data, in 2021, BMW delivered about 2522000 vehicles in the global market and 846000 BMW and mini brand vehicles in China. BMW Group delivers one of every three cars to China.
At the beginning of its establishment in 2003, brilliance BMW adopted the asset light investment strategy of renting production lines, and began to invest heavily in 2010. Now, BMW factory has fully blossomed in Shenyang.
Between 2003 and 2008, BMW’s sales in China soared from 19000 to 66000. In 2021, despite the covid-19 pneumonia epidemic, BMW’s sales in China increased by 8.9% year-on-year, reaching a new high for the second consecutive year.
At the end of 2021, BMW Group announced at the online meeting last year that it would uphold the principle of “China first” and give priority to the needs of the Chinese market in the development of new products.
At the beginning of entering China, BMW only launched two general-purpose models, but they soon found that Chinese customers had unique requirements for car size and space. Since then, BMW quickly launched long wheelbase models, creating a precedent for BMW’s personalized customization for a single market. Now walking on the road, there are all kinds of BMW cars.
BMW drives into more and more people’s homes
Opening the map of Shenyang, BMW 4S stores are scattered all over the city, and the nearest two are less than 10 kilometers apart. Walking in the streets, BMW is no longer a rarity.
Yu Haitao, sales manager of Shenyang Huabao Automobile Sales Service Co., Ltd., said that more than 10 years ago, some enterprises bought BMW cars. Nowadays, more and more families choose BMW as an improved car, even the first family car. “In the store, some models have to wait half a year to mention the car.”
Liu Mengqi, a citizen of Shenyang, is a BMW owner. When she got married in October 2021, she received a BMW from her father. “My dad said it would be nice for him to buy a bike when he got married,” she said
The continuous growth of residents’ income is the strong Beijing Dynamic Power Co.Ltd(600405) of market growth. In 2021, the per capita disposable income of Chinese residents was 35128 yuan, a nominal increase of 9.1% over the previous year. The number of motor vehicles in China was 395 million, a year-on-year increase of 6.32%.
The strong growth of demand has promoted the localization process of BMW. More and more BMW cars are produced in China, and the progress of manufacturing technology provides guarantee for them.
As an engineer who grew up by workers, Wu Shaoyu, who graduated from Shenyang equipment manufacturing engineering school, now deals more with Siasun Robot&Automation Co.Ltd(300024) . Here, workers are the “operators” of modern science and technology.
Wei Lande, President and CEO of BMW Brilliance Automobile Co., Ltd., said that he has worked for BMW for more than 30 years and visited factories around the world. “The factory in Shenyang is pioneering and represents the future of manufacturing industry”.
In recent years, the green demand in the Chinese market has released new growth space for BMW.
“China has become a global leader in electric vehicles and a key driver of digitization.” Peter, the director in charge of China Affairs of BMW Group, said that China is the best choice and partner in BMW’s transformation towards electrification, digitization and sustainable development.
In 2021, the number of medium Shanxi Guoxin Energy Corporation Limited(600617) vehicles increased by 59.25% year-on-year, far ahead of traditional power vehicles. It is estimated that by 2025, a quarter of BMW’s sales in the Chinese market will be pure electric vehicles.
optimistic about China and will continue to invest in
On February 11, BMW Group and Brilliance China announced that they would complete the equity delivery of about 27.941 billion yuan in the near future. BMW’s stake in brilliance BMW will increase from 50% to 75%.
At the beginning of the year, China just released the restrictions on the proportion of foreign shares in passenger car manufacturing.
For the capital and share increase, BMW announced that based on its confidence in China’s economy and its long-term commitment to the Chinese market, BMW will continue to invest in China.
BMW Brilliance’s new joint venture contract also came into force on February 11, and the validity period is extended to 2040. Gao Le said that the approval of the new joint venture contract and the related BMW’s continued investment project in Liaoning is the latest example of China’s expansion of high-level opening to the outside world, especially China’s automobile industry.
As early as April 2018, China announced the timetable of further opening-up policies for the automobile industry, and made it clear that the restriction on the proportion of foreign shares in passenger cars would be abolished in 2022. On January 1, 2022, China fulfilled its commitments as scheduled.
In a “time treasure construction” video shot by BMW Brilliance, the whole construction process of Tiexi New Plant and Dadong plant upgrading and expansion project is displayed, which fully shows the speed of China.
From parallel approval to breakfast meeting, from Dadong to Tiexi, the continuously optimized business environment escorts the investment. Luo Jing, director of Shenyang Dadong District Bureau of industry and information technology, said that Dadong completed all processes such as planning, land acquisition and leveling in two years, and completed multiple licenses involving land and construction procedures in one day
“We are very grateful to Chinese governments at all levels for their strong support for BMW’s development in China.” Gao Le said that BMW Group will continue to take China as its home, continue to invest with its Chinese counterparts and joint venture partners, and make long-term contributions to China’s economic growth and social development.
