BMW leads premium automotive segment in 2013

Having usurped the premium vehicle market sales crown from Mercedes-Benz in 2012, BMW Group Malaysia has consolidated its lead over its traditional arch-rivals with another record-breaking performance in 2013, charting a sales growth of 14% from 6,988 vehicles sold in 2012 to 7,974 in 2013. The number breaks down to 7057 BMW, 437 MINI and 480 Motorrad vehicles.

Announcing the performance result, Dr. Gerhard Pils, Chief Executive Officer, BMW Group Malaysia said, “2013 proved to be yet another historic milestone for us where we achieved yet another new record and emerged as number one in the premium segment of the Malaysian automotive industry.”

Dr. Pils added that the record breaking performance for BMW Group Malaysia arrives in tandem with the positive performance of the BMW Group worldwide where the organisation delivered 1,963,798 vehicles, a 6.4% growth from the previous year (1,845, 186:2012) all over the world.

The CEO further reflected on a busy year for BMW Group Malaysia in which the company launched the all-new BMW 1 Series, 4 Series, MINI Paceman, and BMW 1200 GS motorcycle besides also facelifting the 5 and 7 Series. The 3 Series family, meanwhile, was expanded with the new 3 Series GT and 316i Sedan. Local assembly operations were also expanded, with a second line opened in Kulim to accommodate SKD variants of the 1 Series, X3, and MINI Countryman.

BMW’s impressive sales volume was sustained by a steadily growing network that now includes 31 dealerships throughout the country. In 2013 alone, the premium automaker opened new BMW, MINI and BMW Motorrad dealerships on the Island of Langkawi; Kota Kinabalu; Terbrau, Johor; Puchong as well as in Ipoh.

Mercedes-Benz Malaysia, on the other hand, maintained its total sales volume, going from 8,081 units in 2012 to 8,082 units in 2013. The company saw sales of its passenger vehicle range dip cancelled out by robust growth of its commercial vehicles. Sales of Mercedes-Benz commercial vehicles grew 76% from 2012 to record a total of 162 units in 2013, whilst Mitsubishi FUSO recorded a 16% to hit 2,532 sales in 2013, a new record for the brand, which breached the 2,000-unit threshold in 2012.

Overall sales of Mercedes-Benz passenger vehicles dipped from 5,809 units in 2012 to 5,388 in 2013, but MBM President and CEO Mr Roland Folger explained that there was actually growth of 37% in the second half of 2013 and the company is stepping up its efforts to recapture lost market share with the introduction of new models in 2014, a year which also marks the 30th anniversary of the Mercedes-Benz Apprentice Training Centre in Glenmarie, and 10th anniversary of its assembly plant in Pekan, Pahang.

Folger also noted that recently there had been an influx of imported used Mercedes-Benz passenger vehicles in the Malaysian market from channels other than the maker’s official distribution system (also known as grey import vehicles). He highlighted that these vehicles had not been adapted to Malaysian fuel quality, and touched on issues which purchasers of these vehicles may face.

“As a responsible brand owner it is Mercedes-Benz Malaysia’s duty to caution customers about the risk they are taking in purchasing a grey import. They are making a large investment and ought to be aware of the possible consequences. The fuel in Malaysia is at Euro 2 level. Hence, grey market vehicles may not operate at optimum level and could experience faults directly related to quality of fuel. Only officially imported vehicles through Mercedes-Benz Malaysia are technically prepared for the Malaysian fuel qualities,” cautioned Folger.

Folger’s advice in actual fact rings true not only for Mercedes-Benz but for parallel imported cars in general regardless of brand. Car makers go through extraordinary lengths to fine-tune their vehicles for different market, taking into account factors such as fuel quality, climate, temperature, and humidity. It is also worth noting that parallel imported vehicles are not backed by warranties honoured by the official franchise holders, and as such any malfunctions on the vehicle are entirely at the owner’s risk.