Why BMW Is Succeeding in China

By John Rosevear – Oct 22, 2013 at 8:18AM

OTC: BAMXF

Bayerische Motoren Werke Aktiengesellschaft

Market Cap

$75B

Today's Change

(3.93%) $4.46

Current Price

$117.91

Price as of April 25, 2024, 1:50 p.m. ET

BMW is riding a boom in demand for Western luxury goods in China -- a boom that could drive big gains for years to come.

BMW's X1 has done very well in China, where European luxury sales are hot -- and small luxury SUVs are an especially hot market segment. Photo credit: BMW

BMW (BAMXF 3.93%) has seen strong growth all over the world in recent months. But China is proving to be especially fertile ground for the German luxury-car maker: Through September, BMW's sales growth in China has far outpaced the overall market's gain.

What's driving those gains? As usual, BMW has executed very well in the Middle Kingdom -- but China's immense, and still-growing, appetite for Western luxury goods is a tailor-made opportunity for the German firm. In this video, Fool.com contributor John Rosevear looks at BMW's recent results in the context of China's luxury boom -- and at the numbers that suggest that this could be just the beginning of a golden run for companies like BMW in China.

Fool contributor John Rosevear owns shares of General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends BMW and General Motors. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.