The Brilliance-BMW joint venture plans to sell 150,000 BMW sedans in 2012, up 40% compared to 2011. Brilliance-BMW sold 108,190 BMW sedans in 2011, up 53,5%, outclassing China’s passenger car sales rise of 5.2%.
“I believe sales in China’s luxury car market should rise 15 to 20 percent this year as this segment is still small in China and more consumers are chasing for premium brands,” chairman Wu Xiaoan told reporters at a results briefing. “We will grow faster than the market.”
The Dadong facility will expand production capacity to 200,000 units by the end of 2012, to 160,000 until 2013, from the current 100,000. BMW-Brilliance has a second plant which had started production earlier this year, adding another 200,000 units by the end of 2013. Shenyang-based Brilliance declared a 43% rise in net profit to 1.8 billion yuan ($285.4 million).
China’s luxury segment is expected to rise 10% this year, after a slow down in 2011 due to Beijing scrapped tax incentives for small cars.