M to prop up BMW sales

Aussie petrol heads are helping BMW Australia to resist the general downturn in sales this year.

As Australia’s new-vehicle market dropped by more than eight per cent through the first third of the year, BMW says the growing number of M-car fans has resulted in only a four per cent drop in its showroom deliveries.

“Australians like performance cars. I think this market, and the Australian culture, will always have an appetite in one shape or form for performance cars,” BMW Australia’s general manager of marketing Tony Sesto told carsales.com.au.

“So we are bucking the trend for the industry.”

Even as the number of V8 performance models in its range is shrinking, the total share of hard-core M and softer M Performance cars being purchased is the highest rate of any country. Per capita, Australia also rates second overall for pure M car sales.

“I think it’s the Australian culture. Aussies have always loved their performance cars. If I can use the word, they are petrol heads,” says Sesto.

“We are second in the world for M. We were first for a very long time, and it was only at the end of last year that it changed. We don’t have the rankings for M Performance, but it would be very similar.

“And that is very similar on the MINI brand, with JCW, as well.

“The M Performance is 30 to 40 per cent of our volume in 1 Series. That’s ahead of any other market by a country mile. And that’s a vehicle coming to the end of its life cycle.”

Sesto says M cars are a sharp weapon as BMW battles to reduce Mercedes-Benz’s lead in prestige sales but also confirms the impact of a new-model push through 2019.

“We try not to focus too much on what the competition is doing. We are very confident and very fortunate that we have so many new models this year.

“I think it will be almost 10, just this year, so this is a product offensive year.”

The roll-out has already begun with the new X5 and 3 Series, and next week BMW goes public with its Z4 roadster and 8 Series, but then comes the hulking new X7 and more.

“X7 has a start of sales of May 11. 7 Series has a mid-cycle update. We also have the completely new X3 M and X4 M, which will be late July or early August.

“Then we have a few more things up our sleeves. A few more surprises before the end of the year.”

Sesto also says BMW is being helped by the high percentage of SUV sales in Australia, where it is bucking the market downturn.

“We have an all-new range of SUVs. Holding 60 per end of our sales puts us in a fresh and competitive position. We are up in comparison to the overall premium segment.”

As for M cars, Sesto says they keep BMW going.

“I think it’s definitely a good thing. It’s a great thing for the brand. A huge part of our heritage is racing, so it aligns with what the brand stands for.

“In terms of numbers [the top seller] at the moment it would be the M2 Competition. It’s one of the newest and also one of the entry models into the M range.

“The take rate across the majority of our vehicles is quite strong with M Performance, whether it’s passenger or SUV. With SUVs there are a choice and for packages available as a no-cost option then M Performance has the highest take-up.”

As Sesto talks about M cars he confirms that the familiar V8 soundtrack that resonates with older petrol heads is now being replaced by bop-bang exhaust pyrotechnics in turbo cars.

“[V8 sound] is a strong attraction. It’s an emotional sound. It gets the blood pumping, that emotion,” he says.

“And for the people who don’t want it, you don’t have to have it. If you want that noise, it’s just one press of a button.”

“The [turbo] noise is definitely one thing. But you also see some of the efficiency they are getting from some of these twin turbos. It is very impressive.

“Noise is one thing, but when you look at the fuel efficiency and the additional power output from a [turbocharged] six-cylinder engine it’s very exciting.”