More than sales: Why Singapore matters to BMW
20 Nov 2024|6,624 views
There were 30,225 new cars registered in Singapore in 2023. While that figure seems large here, it is a drop in the ocean compared to new car sales in larger, neighbouring countries.
Now, of that total, around 11% or 3,379 units were BMWs sold by the two authorised dealers here - Eurokars Auto and Performance Motors Limited. To put that number into context, BMW delivered 2,253,835 cars globally in 2023. That means Singapore accounted for 0.15% of all new BMWs sold last year.
So, on paper, our market could easily be overlooked by the Bavarian carmaker. Instead, the opposite has happened: Singapore, both as a country and as a market, continues to be an integral part of BMW's global operations.
Singapore's new car volume may be small, but it plays an outsized role in BMW's regional operations
Key reasons
To get a clearer picture, we had a short chat with Jochen Goller, Member of the Board of Management of BMW AG for Customer, Brands, Sales. According to him, there has been a shift towards regional importance over time. Previously, the U.S.A, China, and Europe were the dominant territories.
However, though Europe is solid, it's a region that's relatively stable. Meanwhile, China, due to its economy and various other reasons, is stagnating. But Southeast Asia is a different story because it's a growing region, and Jochen believes it will play a bigger role in the future.
Singapore is home to BMW Asia, a regional headquarters that oversees 14 markets, stretching from Bangladesh in South Asia to New Caledonia in the Pacific. The east Asia region, he says, is perfectly served from Singapore. The country's accessibility and air hub status make travelling in and out easy.
Singapore's push towards electromobility is aligned with BMW's goals
Jochen also cites the country's stability and rule-of-law as factors that make Singapore attractive. "When you look at globally, what is happening, there is a lot of turmoil and political unrest. Therefore, I think it's quite a choice for multinational companies."
Singapore's push for electromobility is another plus. "You're looking to heavily transforming to electromobility, and this is something that again is quite close to our strategy. Currently, we are number three globally when it comes to electric car sales. You have BYD and Tesla, and then we come in. Many people don't know this."
Obviously, BMW's local electric car sales volume is small. But it's the experience the carmaker gleans from operating here that is valuable. "If electromobility in Indonesia and the Philippines keeps growing, we can leverage learnings from here", he added.
Jochen Goller has over 10 years of experience in the Chinese market
Chinese learnings
An affluent segment, and a growing one at that, is something a brand like BMW wants to serve. Jochen counts on his experience working in China to help expand the brand's presence in this segment.
His first stint there was as BMW's Head of Marketing from October 2004 to September 2009. Following this, he was Head of Sales and Marketing for BMW Brilliance Automotive, a joint venture between BMW Group and Brilliance Automotive, between May 2015 and February 2018.
Shortly after, Jochen was appointed President and CEO of BMW Group Region China, a position he held from March 2018 to October 2023. He recalls, "When BMW first entered China, we were selling 10,000 cars a year. After my first stint, this had become 100,000 units a year. During my second stint, BMW was selling 800,000 cars annually."
BMW's Chinese operations started small, but both its production and dealer network eventually grew to massive proportions
If there was one thing Jochen and BMW learnt during this period, it was dealing with rapid growth. Increasing production is one thing, but the brand had to very quickly expand its dealer network, too. "So, there's nothing in the job that I'm doing now that I didn't experience in China", he quipped.
Starting small, though, had its advantages. When BMW was selling 10,000 cars a year in China, the brand image was still 'unshaped'. So, the brand did a lot of experiential events to position the brand and shape the customer journey. "Chinese customers who buy a luxury car are very demanding, so you really have to treat them well."
Jochen said that some of the experiences offered by the Retail.Next global concept are actually from China. When asked to explain further, Jochen highlighted that one of the purposes of Retail.Next is to connect the online with the offline.
Allowing each BMW model's character to be highlighted in a specific environment is one of the goals of Retail.Next
For instance, configuring a car used to be something you did online, but the configuration was 'lost' before you reached the showroom. Now, with the My BMW app, this doesn't have to happen.
Retail.Next also showcases cars according to their positioning. Previously, showrooms had a 1 Series beside an 8 Series, which Jochen says is like placing a 'normal' watch next to a Patek Philippe. "With Retail.Next, the cars each have their own space and environment", he added.
Jochen continued, "We must care about the privacy of customers and focus on the exclusiveness. In my previous role in China, I could only influence the direction of this, but now I can just do it directly."
The 507, whose design inspired the Z8, is Jochen's dream car
On a personal note
On the topic of cars, I asked Jochen which BMW is his favourite, and without hesitation, he replied it was the 507 and called it his 'dream car'. Produced from the mid-to-late 1950s, the 507 is the model that the Z8, its spiritual successor, is based on.
As part of the original team (when BMW first took over), Jochen is fond of MINI as well. And, after working with Mike Cooper to develop the John Cooper Works brand, it's no surprise that the MINI he loves dearly is the JCW Clubman. "What a cool car!"
It's obvious, though, that Jochen is focussed on electromobility, too. His current company car is an i7, which he described as 'terrific'. He also has his eye on the future. "The Neue Klasse model. That will surely be my new favourite."
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There were 30,225 new cars registered in Singapore in 2023. While that figure seems large here, it is a drop in the ocean compared to new car sales in larger, neighbouring countries.
Now, of that total, around 11% or 3,379 units were BMWs sold by the two authorised dealers here - Eurokars Auto and Performance Motors Limited. To put that number into context, BMW delivered 2,253,835 cars globally in 2023. That means Singapore accounted for 0.15% of all new BMWs sold last year.
So, on paper, our market could easily be overlooked by the Bavarian carmaker. Instead, the opposite has happened: Singapore, both as a country and as a market, continues to be an integral part of BMW's global operations.
Singapore's new car volume may be small, but it plays an outsized role in BMW's regional operations
Key reasons
To get a clearer picture, we had a short chat with Jochen Goller, Member of the Board of Management of BMW AG for Customer, Brands, Sales. According to him, there has been a shift towards regional importance over time. Previously, the U.S.A, China, and Europe were the dominant territories.
However, though Europe is solid, it's a region that's relatively stable. Meanwhile, China, due to its economy and various other reasons, is stagnating. But Southeast Asia is a different story because it's a growing region, and Jochen believes it will play a bigger role in the future.
Singapore is home to BMW Asia, a regional headquarters that oversees 14 markets, stretching from Bangladesh in South Asia to New Caledonia in the Pacific. The east Asia region, he says, is perfectly served from Singapore. The country's accessibility and air hub status make travelling in and out easy.
Singapore's push towards electromobility is aligned with BMW's goals
Jochen also cites the country's stability and rule-of-law as factors that make Singapore attractive. "When you look at globally, what is happening, there is a lot of turmoil and political unrest. Therefore, I think it's quite a choice for multinational companies."
Singapore's push for electromobility is another plus. "You're looking to heavily transforming to electromobility, and this is something that again is quite close to our strategy. Currently, we are number three globally when it comes to electric car sales. You have BYD and Tesla, and then we come in. Many people don't know this."
Obviously, BMW's local electric car sales volume is small. But it's the experience the carmaker gleans from operating here that is valuable. "If electromobility in Indonesia and the Philippines keeps growing, we can leverage learnings from here", he added.
Jochen Goller has over 10 years of experience in the Chinese market
Chinese learnings
An affluent segment, and a growing one at that, is something a brand like BMW wants to serve. Jochen counts on his experience working in China to help expand the brand's presence in this segment.
His first stint there was as BMW's Head of Marketing from October 2004 to September 2009. Following this, he was Head of Sales and Marketing for BMW Brilliance Automotive, a joint venture between BMW Group and Brilliance Automotive, between May 2015 and February 2018.
Shortly after, Jochen was appointed President and CEO of BMW Group Region China, a position he held from March 2018 to October 2023. He recalls, "When BMW first entered China, we were selling 10,000 cars a year. After my first stint, this had become 100,000 units a year. During my second stint, BMW was selling 800,000 cars annually."
BMW's Chinese operations started small, but both its production and dealer network eventually grew to massive proportions
If there was one thing Jochen and BMW learnt during this period, it was dealing with rapid growth. Increasing production is one thing, but the brand had to very quickly expand its dealer network, too. "So, there's nothing in the job that I'm doing now that I didn't experience in China", he quipped.
Starting small, though, had its advantages. When BMW was selling 10,000 cars a year in China, the brand image was still 'unshaped'. So, the brand did a lot of experiential events to position the brand and shape the customer journey. "Chinese customers who buy a luxury car are very demanding, so you really have to treat them well."
Jochen said that some of the experiences offered by the Retail.Next global concept are actually from China. When asked to explain further, Jochen highlighted that one of the purposes of Retail.Next is to connect the online with the offline.
Allowing each BMW model's character to be highlighted in a specific environment is one of the goals of Retail.Next
For instance, configuring a car used to be something you did online, but the configuration was 'lost' before you reached the showroom. Now, with the My BMW app, this doesn't have to happen.
Retail.Next also showcases cars according to their positioning. Previously, showrooms had a 1 Series beside an 8 Series, which Jochen says is like placing a 'normal' watch next to a Patek Philippe. "With Retail.Next, the cars each have their own space and environment", he added.
Jochen continued, "We must care about the privacy of customers and focus on the exclusiveness. In my previous role in China, I could only influence the direction of this, but now I can just do it directly."
The 507, whose design inspired the Z8, is Jochen's dream car
On a personal note
On the topic of cars, I asked Jochen which BMW is his favourite, and without hesitation, he replied it was the 507 and called it his 'dream car'. Produced from the mid-to-late 1950s, the 507 is the model that the Z8, its spiritual successor, is based on.
As part of the original team (when BMW first took over), Jochen is fond of MINI as well. And, after working with Mike Cooper to develop the John Cooper Works brand, it's no surprise that the MINI he loves dearly is the JCW Clubman. "What a cool car!"
It's obvious, though, that Jochen is focussed on electromobility, too. His current company car is an i7, which he described as 'terrific'. He also has his eye on the future. "The Neue Klasse model. That will surely be my new favourite."
These features may also interest you
Christophe Musy, Stellantis Senior Vice-President for ASEAN, tells us how Peugeot will evolve, and why ICE cars will still be around for a while
Rolls-Royce CEO Torsten Muller-Otvos tells us about how the brand has evolved since he came onboard, and explains why electric propulsion suits it well
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