BMW ventures with Great Wall to produce future MINIs in China

KUALA LUMPUR: BMW is all set to enter the Chinese electric car market under a joint alliance with Great Wall Motors. The two automobile tycoons have come together and announced a plan to build a joint plant in China.

The venture of the two companies, named Spotlight Automotive Limited, will possibly begin with the production of a fully electrical Mini-e under the MINI brand of BMW.

The plant is estimated to hold a standard capacity of 1,60,000 vehicles every year. The estimated investment for the merger is around 650 million Euro (approx. RM 3.5 billion). The construction phase for the plant is planned for 2 years, from 2020 to 2022.

An official inauguration event took place in Zhangjiagang, which is the location for the new automotive plant. The Jiangsu province was considered as the location for the plant as there is the availability of workforce, supplier network and the infrastructure for education and technology.

Spotlight Automobile joint venture is set to play an essential role in the MINI’s future, as this partnership will provide additional capacity and flexibility to the MINI Plant in Oxford. The plant in Jiangsu will evidence the production of the future electrical vehicle of both the BMW and Great Wall Motors brands.

BMW tends to be the leading market supplier under the electrical automobile section with an aim to supply over a million hybrid and fully electric cars. The expansion strategy, which resulted in the joint venture,

might help the company in developing the MINI brand naturally, giving the brand the boost it requires. Moreover, this venture will not look forward to creating a new sales organisation in China. Every partner will use its individual channels for sales for specific brands.

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