BMW meets Audi

Recently, BMW officially announced that it will expand its production capacity in China and double its engine production to reduce costs while at the same time narrowing the gap with Audi in sales and profits.

According to Bloomberg News, BMW plans to expand its production capacity at its plant in Shenyang in its partner, Brilliance China Automotive Holdings Co., Ltd. It is expected that the Shenyang plant's annual production will exceed 400,000 vehicles.

China officially overtook the United States as BMW's largest sales market in 2013. Last year, BMW's sales in China reached 391,713 vehicles, which accounted for 17% of its global sales. Last year, BMW sold 376,636 vehicles in the United States, far behind China.

In the first two months of this year, Audi sold more cars in China for the first time in nine years. Although it only exceeded 383 cars, Audi is also working hard to expand sales as Audi's largest market.

BMW's increase in engine and car production is undoubtedly beneficial to reducing costs and increasing profits, and it also shortens the time for replacement of new cars. In addition, BMW can also use this to reduce the exchange rate risks associated with international trade.