As early as 2018, when the current BMW X5 was just listed in China, there was already news that BMW Brilliance planned to produce AGM models in 2022, but at that time, everyone's reaction could be summarized in three words: No! can! Yes! After all, at that time, the X5 also had the halo of BMW's flagship SUV, and the "self-descending segment" after domestic production was definitely not what BMW wanted to see.
After 4 years of time, with the BMW Group officially releasing the official map of the domestic BMW X5 long wheelbase version, it finally came to an end to this matter. So the question is, why did BMW start producing domestic X5 at a time point nearly 4 years after the domestic listing of this generation of X5? Will the pricing of the domestic X5 really surprise us as rumored on the Internet?
What is the significance of the domestic X5?
Why didn't everyone believe that BMW would make a domestic X5?
From the perspective of market performance, imported X5 sales have been eye-catching enough, whether it is the overseas North American market, or the Chinese market, X5 sales and the same level of the main competitors Mercedes-Benz GLE or Audi Q7 opened up a big gap. For the whole year of 2021, the sales volume of bmw X5 is 50217 vehicles, and this sales volume averages nearly 4200 vehicles per month, which is very remarkable for a model with an average transaction price of more than 800,000 yuan, and there is no need for domestic production.
It is also this average monthly sales of nearly 4200 vehicles, which has become a further "obstacle" for BMW X5. As we all know, under the multiple unfavorable factors of chip shortages, the outbreak of the epidemic and the high cost of raw materials, BMW is the only luxury brand in the BBA in China to achieve year-on-year growth in 2021. In 2021, BMW delivered a total of 846,000 new vehicles in China, an increase of 8.9% year-on-year, accounting for nearly 34% of its overall global market share.
After the 3 Series, 5 Series, and X3 models fully dominate their respective market segments, BMW is bound to seize more incremental markets in China. The localization of luxury medium and large SUVs is already the trend of the times, whether it is the Cadillac XT6, or the Lincoln Aviator, or even the Infiniti QX60, which does not have a strong sense of existence, has achieved localization. Lincoln achieved an excellent result of 32% year-on-year sales growth last year, setting a new high since entering China. Therefore, the localization of X5 does not mean that BMW's brand power will decline, but will meet the new car purchase demand that is constantly emerging in the context of consumption upgrading. Breaking through the import bottleneck of 4200 vehicles is what BMW wants, and BMW Brilliance's Dadong plant has left a full 120,000 vehicles / year production capacity for the domestic X5.
Back to the product itself, the X5 is no longer the million-dollar BMW flagship SUV of the past. Today, on top of the X5, which starts at just 699,000 yuan, there are higher-level models such as the X6 and X7 to support the height of the BMW SUV family. After having a solid user base and brand support models, the emergence of the domestic X5 can be said to be a "two-way rush" between BMW and domestic consumers.
Of course, the result of the rush is definitely to give priority to interests, and another indispensable factor in promoting the localization of X5 is the change in the company's stock ratio. As early as October 2018, at the same time that the domestic X5 plan was stranded, Brilliance Auto signed an agreement with BMW Group, which planned to acquire 25% of the shares of BMW Brilliance's joint venture for 3.6 billion euros, changing the ratio of BMW and Brilliance to 75% of BMW Brilliance and 25% of Brilliance from 50:50. The change in the stock ratio directly allows BMW to have more say within BMW Brilliance, and its situation is roughly the same as that of Tesla, which is currently wholly owned in China, and also paves the way for the future sales of domestic X5 to overseas regions.
In contrast, the other two German luxury brands in the BBA, the cooperation between Mercedes-Benz and BAIC Group, and the cooperation between Audi and FAW Group, are unlikely to let Mercedes-Benz and Audi occupy the absolute initiative in equity like BMW and Brilliance. Therefore, it is not surprising that BMW is more actively promoting localization than Mercedes-Benz and Audi, and it can take the lead in seizing the high-end market of luxury medium and large SUVs, which has already won half, and the other half depends on BMW's pricing of domestic X5.
500,000 buy X5? It may just be wishful thinking
When it comes to luxury brands to be "domestic", people often think of lengthening and price reduction first. At present, according to the information released by the Ministry of Industry and Information Technology and BMW, the domestic BMW X5 is basically consistent with the current imported version of X5 in the overall design, but it has been slightly modified in the details, such as adding more chrome designs to cater to the tastes of domestic consumers.
In the "classic" extension link, BMW can be described as not stingy, the domestic X5 wheelbase reached 3105mm, which is 130mm longer than the imported version, and the wheelbase is consistent with the BMW SUV flagship X7. In this way, the X5's former disadvantage in the back row space has been made up, and the biggest shortcoming complained about by domestic consumers will no longer exist.
The 130mm of all lengthened in the back row also gives the back row of the domestic X5 a space to enhance the sense of luxury. It is reported that the rear seats of the new car adopt softer padding, and increase the length of the seat cushions, and the seat back will also have an angle adjustment function, which can make the rear passengers find the most comfortable sitting position. In addition, in order to adapt to the preferences of domestic consumers, the adjustment of the domestic X5 vehicle chassis is more comfortable. As for the power part, there is no suspense, and the domestic X5 also has two versions of 2.0T and 3.0T.
And the price that many people are most concerned about, the network has already exposed the "internal news" of 558,000 yuan for sale. But in my opinion, consumers who expect a sharp price reduction after the X5 is domestically produced may be disappointed.
First of all, the price range of the imported version of X5 is now 699,900-839,900 yuan, compared with the entry threshold of the domestic X5 being lowered by more than 140,000 yuan, which is unprecedented in BMW.
Taking X3 domestic production as an example, the lowest listing price of domestic models at that time was 389,800 yuan, while the guidance price of the previous imported version of X3 entry-level models was 421,000 yuan, and the difference between the two was only about 30,000 yuan. Looking at BMW's domestic and imported 5 Series sedan models sold in the same hall, the domestic entry model is 428,900 yuan, and the imported entry model is 423,900 yuan. Configuration aside, the same 525M sports kit model, the domestic long wheelbase is 5,000 yuan more expensive than the imported standard wheelbase model. In terms of BMW's pricing system, the price after domestic production may not necessarily have a large concession, and even the pricing of long-wheelbase models is higher than that of standard wheelbase models.
Although the domestic X5 saves 15% of the tariffs on imported products and some transportation costs, it does not mean that the money saved can be profited to consumers. After all, manufacturers want to maintain a price range similar to the previous imported version as much as possible to maintain the reputation of the model.
On the contrary, the cost advantage of domestic X5 is very likely to be transformed into a configuration advantage, providing consumers with more "value". For example, the Audi A7L we are familiar with, the lengthening practice after domestic production is itself a manifestation of "additional allocation". The price of domestic A7L does not have an advantage, but the advantage is reflected in some of the configurations that need to be optional on imported A7, and it has become standard on the domestic A7L 3.0T model, such as four-wheel steering, air suspension, etc., so as to achieve the role of enhancing the brand image.
Therefore, in the case of good import sales and no terminal discounts, the domestic X5 is unlikely to have a substantial price reduction. The author speculates that 600,000-700,000 yuan must still be the main pricing range of domestic X5.
The question is, who will buy the domestic X5 that will not be sharply reduced in price?
In fact, the import of 700,000 yuan X5 itself is in short supply, and the domestic X5 has made up for its shortcomings, and these upgrades just fit the "just needs" of middle-aged and elderly target users in bmw X5 user groups. The price is not so important for such users who really buy BMW X5, but they pay more attention to the brand identity, presence, and product luxury and comfort.
It is foreseeable that regardless of the final pricing of the domestic X5, it will inevitably bring a new round of changes to the market pattern of domestic luxury medium and large SUVs after listing, and the pressure on competitors will only be greater. At that time, the domestic luxury medium and large SUV champion throne will be spent on whom, and it remains to be tested by the market.
Master observation
As of press time, many BMW owners have complained about the B48 engine's serious oil burning phenomenon, and the number of complaints from car owners with similar problems continues to rise. Not surprisingly, the domestic X5 will also be equipped with this "problem" engine. Finally, I would like to say that regardless of whether the domestic X5 can further consolidate BMW's position in the domestic medium and large SUV sales crown, I only hope that BMW can treat such after-sales problems like "lengthening", not only to listen to consumers' purchase demands, but also to deal with the complaints of the majority of car owners on after-sales problems in a timely manner. As long as the quality of the product is put first, consumers will naturally be willing to pay for a good car.