BMW boss looks to luxury market
For an automobile manufacturer to succeed, it needs to distinctively position itself in either a mass volume market or the premium market, BMW chairma, Helmut Panke, said yesterday in Seoul.
"Each segment has a different recipe, strategy and rules of success," said Mr. Panke. "Global companies such as GM and Daimler Chrysler that had problems did not position themselves. Those companies tried to be a little of both."
Mr. Panke was visiting Korea to celebrate BMW Korea's 10th anniversary of operations here.
BMW Korea, which leads the local market in sales of imported vehicles, has set a goal of doubling its market share in Korea to 1 percent within the next 10 years.
"BMW Korea's half a percent market share in Korea seems comparably small to that of stronger markets but it is fair to say it's a market to grow in," Mr. Panke said. "Our goal is to achieve 1 percent market share in Korea within 10 years, which is similar to the present market share that BMW has in the world of 1.6 to 1. 7 percent. We see more opportunity to grow in Korea."
The Germany-based luxury sedan manufacturer expects sales to reach 6,000 units this year in Korea as in the last nine months the company has sold more than 4,800 units.
Mr. Panke particularly stressed that BMW Korea has secured the number one spot with more than 25 percent of the Korean premium luxury vehicle market surpassing competitors such as Mercedes Benz and Audi.
The German automobile chairman added that although BMW will develop hybrid engines, it will not be the company's main focus.
"We don't see hybrids as the general future trend of the automotive industry," said Mr. Panke.
"Hybrids are part of a general move to improving fuel efficiency of engines."
The German chairman said the future is in hydrogen fueled engines, and hybrids and directly injected gasoline engines are just steps towards this new generation fuel.
Source: JoongAng