- The ongoing COVID-19 restrictions in China are worrying BMW’s CEO.
- Nevertheless, global sales in 2023 are likely to be similar to this year.
- China is building a laundry list of electric cars.
BMW’s CEO is concerned about the impact of China’s government-imposed lockdown on car production, as the country continues to use strict measures to curb the spread of the COVID-19 pandemic.
BMW CEO Oliver Zips said that the lockdown in China is currently increasing, not decreasing.
“I am worried how we will get out of the lockdown situation in the coming quarters. There is no possibility that China has a solution.
Bavarian car brand Shenyang has three factories in China, thanks to its joint venture with Brilliance Auto, with a dedicated electric vehicle plant in Lydia opening as recently as June.
Chinese citizens have taken to the streets this week to demand an end to strict lockdowns as part of the state’s zero-COVID strategy and, in a rarely seen move, the Xi Jinping government.
Similar dissent erupted last week inside Foxconn’s Zhengzhou factory, where workers protested against COVID-19 restrictions, poor living and working conditions, and claims of overdue wages. Foxconn notably manufactures Apple iPhones, Fisker and its own Foxtron EVs.
Despite the continued lockdown in China and ongoing semiconductor and parts supply chain issues, Zipse forecasts 2023 global sales to be close to this year’s level.
Artist’s impression of the BMW i5
“There will be different developments in different parts of the world, but overall, they will compensate each other,” Zipse said.
By the end of October this year, BMW had sold 7975 cars in Australia. This represents a 17.8 percent decline from the same period in 2021, but is in line with global expectations.
Australia has sourced the BMW iX3 medium electric SUV from its Dadong, Shenyang factory in China. The upcoming i5 medium sedan, the next-generation mini-electric hatch, and the Aceman crossover battery-electric model are all expected to be built in China.
The quirky mini sub-brand won’t stray far from its spiritual homeland. It will continue to produce internal combustion vehicles at Oxford as it is not designed to produce EVs, but is currently replacing the three-door mini electric soon.
A large number of EVs hail from China, including the best-selling Tesla Model 3, Model Y, MG ZS EV, BYD Atto 3, Polestar 2, and the upcoming MG 4, GWM Ora Funky Cat and more. As with major battery suppliers. Contemporary Imprex Technology Company Limited (CATL), BYD and CALB Technology.
EV sales are booming in China. More than 3 million battery electric cars of domestic and Western brands have been registered as of the end of September, representing a 22 percent market share.