In a recent development, Renault announced to establish a plant to assemble cars in 2018 in Pakistan. Apparently, the new auto policy is finally showing progress in the country. In order to expand its business in Pakistan, BMW is introducing new lower end and mid-range models. As a proof, it has already launched its second generation BMW X1.
Managing Director of BMW Middle East Group, Johannes Seibert stated that BMW X1 was launched in order to draw the attention of the customers towards it. He further stated that they have set a competitive price to attract more customers.
The main reason behind this is that 90% of BMW users in Pakistan switch from other brands. The X1 provides a better option to those customers who are looking forward to switching for the best.
BMW has been working in Pakistan since 2004 in collaboration with Dewan Motors. BMW has launched 2 categories in hybrid electric cars known as X5 40e and 330e. Customers provided positive feedback for these two models giving 15% of the company’s total sales in Pakistan.
With 120 preorders already received from Pakistan, X1 is being scouted by many brand conscious customers. The X1’s price is Rs 3.99 million and has already started to get attention from status conscious customers. On February 2017, the shipping will start as the company has a sale of 150 cars per year.
2016 was a successful year, as stated by Seibert. It is estimated that 30% more cars will be sold and delivered to customers this year as compared to the sales in 2015.
Chairman at BMW Pakistan, Dewan Muhammad Yousuf said that almost 250 cars will be sold in 2017. He further added:
“As a lot of developments are taking place in Pakistan, especially after the China-Pakistan Economic Corridor, demand is rising. We are geared up for whatever would be necessary, in this category we are proactive and will go aggressively as per demand and will invest further to expand our operations”
The chairman said that other crossover compacts like Honda Vezel were not a threat to the BMW X1 because these cars are old and do not have the ability to compete with cars like the BMW X1 itself.
Establishment of local assembly plant
Seibert said that the company has not decided to launch a local car assembly plant yet. He was of the view that the customer interaction will play a great role in the plan of setting up a plant. In addition, he stated:
“We are open to anything and willing to discuss anything in this regard. Put simply, if we get enough sales in 2017 we could think about setting up a local assembly plant here in the future”
Subsequently, everything depends on the sales numbers now. If BMW gets enough customers till 2017, the dream of having a local assembly plant in the country might come true.
Do you think Pakistan will witness more BMW cars on her roads in the future?
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