New Gran Coupe 'not niche', says BMW

BMW says its all-new 4 Series Gran Coupe will be as popular as the new 4 Series Coupe and the car that inspired it, the Audi A5 Sportback, but admits most customers would otherwise have bought another BMW.

The Bavarian brand concedes its second Gran Coupe model after the 6 Series is its unashamed answer to Audi's A5 Sportback, which has attracted as many as 1000 annual sales since its 2010 local release.

That and the fact its larger Gran Coupe has accounted for almost half of all 6 Series sales has led BMW Australia to forecast 1000 sales of the 4 Series 'hatchback' per annum, or about the same number as the 4 Series Coupe.

"We don't see it as a niche player," said BMW Group Australia Managing Director Phil Horton. "We see good volume in the 4 Series Gran Coupe and expect to sell about 1000 next year."

However, Horton admits the 4 Series Gran Coupe's popularity will come at the expense of other BMW models.

"Inevitably it will impact something else and I think we'll lose more (4 Series) coupes than (3 Series) sedans," he said.

BMW Australia's General Manager of Marketing, Toni Andreevski, said the 4 Series Gran Coupe's sales cannibalisation of other BMW models could be as high as 60 per cent.

But he insists BMW's newest four-door coupe would still play a vital role in retaining customers and stealing new ones, particularly from Audi, in the biggest part of the luxury car market.

Andreevski said the 3 and 4 Series found more than 670,000 homes worldwide last year, accounting for 40 per cent of BMW sales, and that new additions like the 4 Series Gran Coupe and next month's all-new X4 would continue that growth.

"On a global level the mid-size segment is the largest part of the premium vehicle market and obviously there's still further growth predicted in that segment.

"For the BMW Group it's very important that we continue to bring new products into this part of the market and two of those are the 4 Series Gran Coupe and, soon, the X4.

"Cars like the 3 Series and 4 Series are crucial to the success of BMW globally, so both of those new cars will certainly help us accomplish that goal and increase out share even further.

"So why these two new vehicles? The major reason is they will allow us to fulfil the various customer needs we have around the world.

"We only have to look at the growing four- and five-door coupe segment to see the growth. For example in Australia the Audi A5 Sportback alone has been purchased by 3800 customers since its launch in 2010 and they peaked at 1000 in its first full year.

"The 4 Series Gran Coupe was designed to do that, because if we didn't have it they might otherwise have bought an A5 Sportback. This way they'll stay in the (BMW) family.

"The designers looked at the competitors in the segment, but it doesn't matter if our competitors do it – what matters is if customers want it."

Officially launched this week with an identical engine and pricing line-up to the 4 Series Coupe upon which it's based, the Gran Coupe range opens from $70,000 for the entry-level 420i, making it $9500 more than the equivalent 3 Series sedan, which offers more headroom and luggage space, but less style.

Similarly, at $72,300 the 420d Gran Coupe costs $9500 more than the 320i, the 428i Gran Coupe is $11,600 more expensive than the 328i and the range-topping 435i (there are no plans for an M4 Gran Coupe) is a big $15,100 pricier than the 335i.

However, BMW says that, as with the 4 Series Coupe, the Gran Coupe's price premium over the 3 Series sedan is more than compensated for by extra standard equipment including 18-inch alloy wheels, leather trim, bi-xenon headlights, Professional navigation, telephone, automatic tailgate and a reversing camera.

The coupe-style 4 Series is also the first new BMW model to be available with the full suite of BMW ConnectedDrive infotainment platform, which will be rolled out for other models this year.

Despite the Mercedes-Benz C-Class outselling the newer 3 Series 2079 sales to 1710 so far this year, BMW says it remains the number one brand in the premium mid-size segment, including the 3 Series sedan, wagon and GT, the X3 and Z4, and the 4 Series coupe and convertible – combined sales of which are up 8.5 per cent in 2014.

"BMW Australia is already the dominant player in the mid-range segment with more than 4000 sales and we're ahead of our closest competitors, who have so far managed just over 3000 sales," said Andreevski.

"The 4 Series Gran Coupe and X4 will push us further ahead."

Of course, BMW's German arch-rivals aren't standing still either, with Audi set to an X4 rival in the Q4 and Mercedes due to release a new GLK and all-new GLC and C-Class hatchback models.

Asked if all stones had now been overturned in the mid-size luxury segment with the 4 Series Gran Coupe and X4, BMW's local marketing chief said: Have we filled all the possible niches in the mid-range premium segment? I'd say so."