Dubai: The BMW Group is releasing a new line of redesigned small cars in the Middle East and has planned a host of launches.
This will include the new X1 and a second-generation X3, apart from an updated 3 Series. The aggressive small car roll out programme includes the Mini marquee as well, with the Countryman, the first four-door model in the range, set for a January launch.
"Yes, we will be pushing hard to expand our Mini business next year — over the next two years the portfolio will grow from three models to six," said Phil Horton, regional managing director, BMW Group.
"We are also planning on extending our small sedan class in the BMW 1 Series.
"We anticipate the premium segment growth will primarily occur in the small city cars, compact class, small sedan class and the small to mid-sized SUV class. Through our small car strategy, we are investing heavily in these three segments, more than any other premium automotive manufacturer.
"In the longer term, we believe that innovative design symbolises future mobility and the small car segment is key to this future."
In 2014, the MegaCity, an electric, small city car will be launched as a sub-brand by the group.
These days, it's not unusual to find a luxury automaker trying to get a small car strategy to sit well with its traditional clout in the larger vehicle formats.
But getting such a game plan to stick is the hard part.
"Part of our new model launch strategy is to offer a range of models that have different specifications so we appeal to customers at different price points," Horton said.
"From a Mini or a small BMW vehicle with the highest specifications, to our top-of-the-range 730Li, without the highest specifications, we have varying price points to match each customer and tailor their budgets and tastes accordingly. To achieve this, we work closely with our importers to ensure we create packages and options that are competitively priced."
Smooth run
As for the mid and top end of the luxury automotive market, the BMW Group expects the smooth run it has had this year to continue. Since its launch in March, the 5 Series has notched up more than 2,200 unit sales in the region.
Horton said: "We have not been affected by any stagnation in this segment, it has gone from our fourth best-selling car to our second this year."
Further up the luxury chain, the 7 Series has turned out to be the best selling luxury sedan in the region. Up until October, more than 3,990 units were sold, a gain of five per cent over the comparable period last year.
The pricey X range has accounted for 32 per cent of the group's sales in the first 10 months of the year.
The BMW Group's sales volumes are also indicative of what is turning out to be a much better year for the local automotive market overall after the sharp decline last year. Across the board, local automobile dealerships are hoping to achieve five per cent and more on average year-on-year.
Outside of the UAE, the BMW Group is achieving healthy growth rates. According to Horton, Saudi Arabia is now its third largest regional market after Abu Dhabi and Dubai.
"The 7 Series, is the biggest selling vehicle in this market with 1,288 units sold, up nine per cent on the 2009 sales performance," said Horton.
"In fact, all of our models are up this year in Saudi Arabia, with the exception of the 6 Series which is being updated with a new model next year."
More can be expected from the kingdom as the BMW importer completes a 300 million riyals (Dh293.85 million) expansion plan, which includes the refurbishment, expansion and completion of additional facilities in Al Khobar and Riyadh.
Operations were also launched in the Iraqi city of Erbil, whose potential, Horton rates, as "excellent". A sentiment he expresses for the group's overall performance in the region.
"We have achieved a 15 per cent sales growth over the first 10 months; across 14 Middle East markets, we sold 14,028 BMW and Mini vehicles to customers."
