BWM goes deep as China sales soar

Isaac Mostovicz writes that the surge in newly-wealthy Chinese Lambdas has boded well for BMW's bottom line...

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Luxe in China continues to grow at staggering rates. Some of this could be cast-offs from the falling Japanese luxe market. Whatever it is that is luring luxe brands to China, it is showing no signs of letting up.

In China Daily this week it was reported that luxury car maker BMW is planning for a seven-fold increase in its China production capacity:

The German carmaker’s strategic plan is to increase annual production to 300,000 units with local partner Brilliance China … Its joint venture with Brilliance now has a 41,000-unit plant in Shenyang, capital city of northeastern Liaoning province. The facility’s capacity will be expanded to 75,000 units next year.

I wrote previously that this surge in luxe capital and spending in China is likely the work of newly-wealthy Lambda personalities who are splashing their cash around. This won’t save the entire industry, but for luxe brands in China, this bodes well for the future.

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