BMW is confident it can stay strong in China, its biggest market, because its premium status is less challenged by local rivals than those in volume segments, CEO Oliver Zipse said.
Mass-market brands from global automakers have come under increased pressure from domestic brands in the Chinese market in recent months. Price cuts launched by Tesla in January have also put pressure on sales and earnings.
Zipse said premium automakers such as BMW are better insulated from this pressure
"Several manufacturers are currently lowering prices – in some cases substantially -- to gain market share," Zipse said on the company’s first-quarter earnings call on May 4. "At the BMW Group, we have a strong position in China."