BMW sees long-term value in performance

Ian Robertson at the new M showroom

The company even flew in Ian Robertson, member of the board of management of BMW AG responsible for sales and marketing and former boss of BMW SA, to open the new facility at Zambesi Auto.

"SA is one of the top performers in the world in terms of BMW M market share and sales," says Tim Abbott, MD of BMW Group SA. "For example, in 2015 SA was ranked fifth in the world in terms of overall BMW M market share. A total of 916 BMW M units were delivered to local customers while 1,049 M Performance units were also delivered to customers - this is an increase of more than 40% compared to 2014."

The increase in local sales reflects worldwide growth for the performance division, which saw sales in 2015 up by nearly 65% to 35,000 units along with a 16% increase in sales of M Performance models.

Some R10m was invested in the new facility by Rob Sexton and Christo Lindeque, Zambesi Auto owners. Zambesi Auto has always been a pioneering dealership in terms of the M brand within the southern hemisphere, according to the joint owners. "Our initial independent M outlet has been hugely successful. This has been proved by the sales volumes generated. Irrespective of the difficult economic times we are facing, we believe that this particular segment will continue to grow," they say.

M model expansion

That view is echoed by Robertson, who says the company is planning to expand its M models, starting with the new M2 coupe. It will also launch its first ever luxury M sedan later this year with the arrival of the M760 and Robertson promises more M products are in the pipeline.

Given the company's focus on the electric vehicle (EV) market, is Robertson also promising an electric M car? "Electrification is essential going forward and will appear across the BMW range," he says, adding: "I would not rule out an M car that fits that strategy." We can only speculate at this stage, but for now at least a pure electric M car would seem unlikely. Instead, we suspect the company will look at a plug-in hybrid setup similar to regular models like the 330e. This would offer instant torque courtesy of an electric motor, combined with a downsized petrol engine.

"M products are taking on sustainability solutions," says Robertson. " Customers want everything from an M, but want us to deliver on sustainability."

Still with electrification, Robertson says the company is ready to face the introduction of Tesla's Model 3. He says the battery technology on its existing i3 model will be upgraded later this year and the brand is also looking at a third model after the i3 and i8 which is being referred to as the i-Next in keeping with BMW's Strategy Number One Next future planning.

Government support

Robertson also added his voice to the many calling for more effort from the South African government when it comes to EVs. "We'd like to see the government be more proactive in infrastructure," he says.

Speaking of local government, Robertson is confident in both the South African and sub-Saharan markets. He says he has a lot of confidence in Finance Minister Pravin Gordhan and says that in spite of the current economic and political climate, he is a "little more confident in what might happen", adding that "volatility is part of the order of the day".

That potential is one reason why the company will switch production at its Rosslyn manufacturing facility from the 3 Series to the X3 SUV. "X3 manufacturing in SA is ideal for sub-Saharan Africa. Economies (in Africa) are growing and are at healthy levels," he says, pointing out that BMW is taking a 10 to 15-year look into the future in terms of its decisions for the region.

Robertson sums up by saying: "We see good potential." Clearly that potential spans its entire line-up in the region, with more M showrooms planned as well as further plans for its EV range and the regular BMW models.

Source: Business Day