BMW sees 5-10 percent sales increase in China even after tariffs

BMW expects China sales to increase between 5 and 10 percent in 2018, despite the introduction of 40 percent import tariffs on automobiles imported from the United States since July this year.

BMW recently started making its X3 in China, ending imports of the model from its plant located in Spartanburg, South Carolina, and raised costs on the X5 and X6 models to compensate for the tariffs.

“We now have more than six models built in China,” Chief Executive Harald Krueger stated. “We are exporting the X5 from Thailand to China.”

BMW stated that it still exports some X5 models from the United States to Asia, but it is evaluating ways to optimize its flexible production network to adapt to modifications in the political landscape.

BMW will also react by pricing recent modes like its X7, in a way that will be profitable in each markets where they are sold, the company stated.