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US-Russia relations don't affect BMW business (Exclusive)

Business Materials 22 June 2018 20:37 (UTC +04:00)

Baku, Azerbaijan, June 22

By Fikret Dolukhanov – Trend:

All supply chains of BMW Group have been well established, Corporate Communications Director at BMW Group Russia Vasily Melnikov told Trend June 22.

He added that presently neither sanctions nor situation in international politics has affected the company's activity in Russia.

“Once the Russian automobile market was greatly shaken due to the imposition of sanctions and the situation in the international arena as a whole,” he said. "But presently, Russia’s entire automotive market is fully growing. In the premium segment, BMW every month increases sales compared to the previous year and takes a share from its competitors."

Melnikov added that the MINI brand, which has been also represented by the company in Russia, is showing a 60-percent growth compared to 2017.

"In fact, BMW boosts premium segment growth,” he said. “Other brands in the Russian market began to grow only a couple of months ago. But earlier, most of them had zero or negative indicators."

Melnikov added that if the sanctions were lifted, of course, this would have a significant positive effect.

“In general, BMW continues to develop in Russia and carries out its work - new dealer centers are opened, owners of existing dealer centers are being replaced, etc.,” he said.

Touching upon the possibility of expanding activity in the South Caucasus and Central Asia, Melnikov said that according to BMW's global policy, production follows the market.

"If quite a big number of cars are sold in a market, the company considers an opportunity to establish an assembly line or full production there," Melnikov said. “Presently, the number of cars sold in the South Caucasus and Central Asia is not enough to open a plant there."

In 2017, BMW sold 30,018 cars in Russia, which is 9 percent more than in 2016.

Earlier, it was reported that BMW intends to build a full cycle plant in Russia doing welding and painting.

BMW sees Kaliningrad as a possible location for the construction of a future plant in Russia, taking into account the company's long-standing presence in Kaliningrad, as well as the attractive investment atmosphere of the region and the plans of the local government to further improve it.

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