German car maker BMW has targeted Ghana market as one of the immediate markets to improve sales in the Sub-Saharan Africa according to Tim Abbot, Group CEO for SSA
According to the CEO, BMW SA would take responsibility for Ghana and six other key markets in the region for distribution and sales for its forthcoming X3 Sports Utility Vehicles (SUV)
Other key markets are Nigeria, Senegal, Côte d’Ivoire, Togo, Kenya and Angola
Last year, BMW announced it would invest $417 million in its Rosslyn assembly plant in Pretoria to build the next-generation X3 SUV to replace the 3-series sedan that were built at the plant since 1983.
This would be the first time the X3 SUV will be produced outside the U.S
Abbott said current African sales of new BMWs outside SA measured “in the low thousands” and are looking into a “structured” approach to sell vehicles across the continent
Africa vehicle ownership is very low and the market is dominated by used cars, and the CEO said that was an opportunity to sell cars from South Africa, especially the X3 SUV
“It is a vehicle much more suited to African needs and conditions,” he said “Our plan over the next three or four years must be to create a structured sub-Saharan environment for BMW vehicles so that when the X3 is ready, so are the markets.”
Abbott said BMW SA would work with existing importers in these countries not only to increase sales but also to improve customer service and after-sales facilities. It would also seek joint ventures with major pan-African banks to offer vehicle finance to customers.
The company is also planning to re-export used cars from South Africa cars to other countries on the continent and sell them through official dealerships.
In recent years, several global motor companies have increasingly creates subsidiary in South Africa and using them as a base for exporting their vehicles into other African countries.
Some of these automakers include Ford, General Motors, Nissan and Toyota.