BMW invests over $30m in facilities

BMW's regional distributors for Mini compact cars have invested over $30 million in showroom facilities and service centres ahead of the launch.

This is first time that the Mini, in over 40 years that it has been in existence, is being launched in the region. BMW acquired the Mini through its purchase of the Rover Group in 1994.

In the first year of availability, BMW is projecting regional sales of 600 to 800 units for the Mini. Dubai and northern emirates is expected to account for about 300.

"This may seem like a small figure compared to the number of BMW cars that we sell, which is ten times higher. But if you consider that this number is three times the figure that Mini's nearest competitors sold in its best year in the region, it changes your perspective," said Robert Bailey-McEwan, regional managing director for BMW Group.

The Mini has had its Lebanon launch last Wednesday and will be introduced to the local market today. The dealership here, AGMC, has already set up the showroom in Dubai and plans to have a similar one ready for Sharjah some time next year.

"Mini's sales will be driven purely by emotion and we do not see it competing with the BMW. Mini is a truly classless brand and BMW is status-oriented. These are two very separate brands," added Bailey-McEwan.

"BMW has a wider model range and this will be topped by the introduction of one, two and four series in the next two years. The Mini will grow at its own rate."

The regional office is trying to push the Mini into new target groups, including young women users.

As for Saudi Arabia, "It will get the same emphasis as any other market where Minis is available. But since women are not allowed to drive, it does impact that half of your potential user base almost disappears. But we are adapting our marketing campaigns accordingly."

The three Mini models are priced between Dh60,000 and Dh75,000.

Meanwhile, BMW is in line to meet a 30 per cent unit growth during the first quarter of 2002, Bailey-McEwan said.

As for the wider Middle East automotive market, "It has not seen a decline, but overall sales have been flat or growing by 2-4 per cent. The UAE is recording a higher growth at 6-7 per cent."