BMW to use SA subsidiary to spearhead sales growth across sub-Saharan Africa

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BMW to use SA subsidiary to spearhead sales growth across sub-Saharan Africa

3:21 CAT | 05 Jul 2016

Boomberg / The BMW 345i Gran Coupé

German car maker BMW will use its South African subsidiary to spearhead sales growth across Sub-Saharan Africa.

The company announced on Tuesday that BMW SA would immediately take responsibility for seven key markets in the region, with plans to expand into others later.

Tim Abbott, formerly BMW SA MD and now group CEO for Sub-Saharan Africa, said the intention was to increase sales of all brands: BMW cars and motorcycles, Mini and Rolls-Royce.

The immediate target markets are Nigeria, Senegal, Côte d’Ivoire, Togo, Ghana, Kenya and Angola. Abbott said BMW SA would work with existing importers in these countries not only to increase sales but also to improve customer service and after-sales facilities. It would also seek joint ventures with major pan-African banks to offer vehicle finance to customers.

Most car sales in Sub-Saharan Africa are of used vehicles, and Abbott said there was an opportunity to sell used cars from SA.

The biggest marketing emphasis, however, will be on the X3 sports utility vehicle. Late in 2015, BMW SA announced a R6bn investment programme to stop production of the 3-Series car and replace it with the offroad-capable X3.

“It is a vehicle much more suited to African needs and conditions,” said Abbott. “BMW’s global strategy is to build where the demand is.”

He said the goal was to develop a Sub-Saharan sales and distribution network over the next three years so that by the time BMW SA started producing the X3, probably in 2019, African export markets would be ready to receive it.

Source: Business Day Live