On December 16, at the 2022 "New Year Online Annual Meeting", the BMW Group described the company's Strategic Upgrade in China with the emotional theme of "Home in China": to maintain synergy between the corporate strategy and China's development goals, uphold the principle of "China first", give priority to the needs of the Chinese market in the development of new products, and continuously strengthen the co-creation and win-win situation with Chinese partners.
In addition, the BMW Group also put forward the outlook for 2025: it will accelerate the process of electrification and digitalization in China and maintain the same frequency with China.
Adhere to the "China first" and promote strategic upgrading
Dr Peter, Director of Corporate Finance and China at the BMW Group, said: "Every time I come to this great country, I feel like I'm coming home, because it's full of energy and countless family-like partners. We believe that China's movements will lead the direction of the world. Here is the ideal environment and excellent partner to promote the transformation, and the BMW Group will firmly go with its Chinese counterparts. ”
At the same time, Dr. Peter announced: "In 2022, the BMW Group will welcome the opening of three new or upgraded plants in Shenyang and Zhangjiagang, and put into operation the second BMW pure electric vehicle in Shenyang, the Pure Electric 3 Series, further enhancing China's position as one of the three major new energy vehicle production bases of the BMW Group in the world." ”
BMW Group's Strategic Upgrade in China can be described by a string of numbers: "1" refers to the "China First" principle; "2" refers to the fact that both BMW and MINI brands are rooted in China; "3" refers to the firm transformation along the three directions of electrification, digitalization and sustainability; "4" refers to the four R&D and digital bases in Beijing, Shanghai, Shenyang and Nanjing; "5" refers to the five BMW pure electric models that will be presented to Chinese customers in 2022; "2025" Represents the upcoming "new generation" models in 2025; "200 million" and "1.5" represent the BMW Group's carbon reduction targets to 2030 and commitment to the 1.5 degree temperature control target of the Paris Agreement, respectively.
The BMW Group is a director of corporate finance as well as China affairs
Dr. Peter increased investment in innovation and expanded the R&D layout
Promoting technological innovation and digitalization are the two key areas driving the development of the BMW Group's business in China. The BMW Group continues to invest in innovation and accelerate the transition from "Made in China" to "Made in China". At present, the BMW Group has established the largest R&D and digital system in China outside of Germany, located in Beijing, Shanghai, Shenyang and Nanjing, with a team of more than 1,650 people, including around 600 software developers.
Among them, the Beijing R&D Center is mainly responsible for vehicle engineering, testing and certification. The Shanghai R&D center focuses on digital products, software development, and connections to the local digital ecosystem and innovation community. Shenyang R&D center focuses on the development of local electric vehicles and the research and development of domestic models after mass production.
In terms of digital development, in 2019, bmw group took the lead in establishing Lingyue Digital Information Technology Co., Ltd. in Beijing, focusing on creating seamless customer digital journeys. It is worth mentioning that the My BMW App, jointly developed by Lingyue and BMW China's R&D team, has been increasing in user volume since it was launched in China in September last year, and the total number of users has exceeded 3.4 million, of which more than 1.4 million are monthly active users.
BMW believes that dealers play a central role in creating a seamless online and offline digital experience for customers, so it is particularly important to promote the digital transformation of dealers. At the end of October 2020, the "SPARK-DMO" dealer customer business operation platform developed by Lingyue was officially launched, which comprehensively docked the sales and after-sales service needs generated by customers through different business channels, enabled dealers to efficiently complete daily core business through digital means, obtained first-hand business information, and assisted management to optimize dealer business operations through visual reports. Up to now, "SPARK-DMO" has achieved the full network coverage of dealers, helping dealers to achieve cost reduction and efficiency improvement, and optimizing the customer experience.
In 2021, BMW's innovative layout will be expanded to Nanjing. First of all, the joint venture established BMW ArcherMind Information Technology Co., Ltd., using China's local software strength to deepen the development of in-vehicle software, and at the same time set up The Lingyue Nanjing Branch, aiming to provide agile and efficient IT R&D and technical solution services for the production and service of BMW operating enterprises in China.
Accelerate the process of electrification and practice sustainable development
"China first" is undoubtedly the core of BMW's strategic upgrade in China. It means that the BMW Group maintains strategic synergy with the world while maintaining sufficient independence to respond quickly to market changes, especially at the product concept stage, taking into account the expectations of Chinese customers. BMW's success in the field of fuel vehicles has validated this idea, and in the process of electrification, the "China first" strategy will continue to deepen.
First, BMW will further accelerate the electrification process: in 2021, the BMW iX3 is expected to sell up to 20,000 units in its first full sales year. In 2022, the BMW brand will present five pure electric models to Chinese users, including the innovative BMW iX, the innovative BMW i4, and the pure electric BMW 3 Series produced in Shenyang. In addition, a pure electric flagship model will also be unveiled in the next year. By the end of 2023, the BMW Group will offer around 13 pure electric products in the Chinese market.
At the same time, BMW Group will also strengthen its partnership with domestic outstanding battery companies, energy companies and high-tech enterprises, jointly develop the upstream and downstream industrial chain of green electric mobility, and enhance its comprehensive strength in electric vehicle research and development, production and service. In 2017, the joint venture BMW Brilliance was the first to establish a power battery center among high-end car brands, and completed the second phase of the project in 2020, with a total production of more than 100,000 power batteries so far. By the end of this year, 360,000 public charging piles will be networked by BMW.
2025 will be an important node in BMW's strategic transformation. At that time, the BMW Group will unveil a "new generation" of models with a completely redesigned IT and software architecture, a new generation of high-performance electric drive systems and batteries, and a new sustainable concept throughout the entire vehicle life cycle. In the development of the "new generation", the specific needs of the Chinese market will still be placed in the first place. By 2025, a quarter of the BMW Group's sales in the Chinese market will be pure electric vehicles.
Looking forward to 2025, with the arrival of the "new generation", BMW's voice is confident and commitment: always uphold "home in China", and always maintain the same frequency with China's economy and society, coordinated development, and win-win results.