BMW looking at the niche markets

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BMW has indicated their intention to explore different market segments of the auto industry, but not at the expense of the 3 Series and 7 Series.

However, it could be said that BMW has actually too many choices in the marketplace.

Many of BMW’s niche models are based on its passenger sedan line-up, such as the 3 Series/4 Series, which has expanded to six variants – 3 Series sedan, Touring, Gran Turismo, and the 4 Series coupe, convertible and Gran Coupe – but SUVs such as the X3 and X5 have also spawned coupe-style versions in the X4 and X6 respectively.

BMW senior vice-president for Asia-Pacific and South Africa, Hendrik von Kuenheim said model proliferation is discussed “every day” at the company and has proven successful in a number of markets to date.

2016 BMW 3 Series.2016 BMW 3 Series.

“The 3 Series GT – 10 years ago it was never even discussed,” he said. “But in the Asian markets it has been very successful. It has a business class feel in the rear seat and it has been very well accepted in some markets. In other markets they are not ready for that now.”

“There is a point when there is no more business case. When we think, what could we have done with that money, could we do something more successful with the money?”

Admitting that some models were more successful than others, von Kuenheim hinted that some “may disappear” in the future but did not go into detail.

He did, however, hint at future X-badged SUV models on the way, which will include the seven-seat X7 due in 2017/18 and could extend to a smaller sibling to the X4, dubbed X2.

“If we don’t offer choice, you might start losing. The question is: what is the next big niche? There are two more X models coming in the very near future, just because the consumer trend has gone that way.”

BMW last week released details of the mid-life update to its top selling 3 Series range, and while he praised rival Mercedes-Benz’s latest C-Class, von Kuenheim said the refreshed 3 Series range will compete well against it.

“Mercedes has a fresh product. It’s an appealing car. The good thing is, Mercedes is back. It’s … much better when you have a sharp competitor. It took them a long time to come back but they are back. There is nothing wrong with that because it keeps you on your toes.”

He continued, “I am very confident … I believe we still have the ‘ultimate driving machine’. We have a good facelift and some good upgrades and we will take the fight to Mercedes.”

Von Kuenheim said BMW’s luxury flagship – the 7 Series sedan – would continue to be the showcase for its latest technological advancements, despite a consumer shift towards luxury SUVs.

He said the rollout of comfort and safety advances in cars is so rapid that a company might only have exclusivity on the innovation “if you are really lucky for six months” but added that the large sedan would always showcase new technology first.

“The 7 Series will always be the technology leader,” he said. “We will get a lot more frequent updates on the cars as new technology comes. It will always be the pinnacle, as it is for Mercedes S-Class, which is also a bloody good car. That is the total competence which is available in the German motor industry.”

Despite the rhetoric there is no ignoring that the Mercedes range looks like today, while the BMW offerings look like dated face lifted old body styles.