BMW started 2020 with a lot of encouragement, even registering good sales of luxury cars in the first months; however, after the arrival of the SARS-CoV-2 coronavirus pandemic, the company registered a 40 percent drop in Mexico.
The luxury car sales figures were revealed in an interview with MILENIO Alexander W. Wehr, president, and CEO for BMW Group Latin America, who stressed that it was not only the covid-19 that impacted, but many secondary factors, such as the fall of the market in Europe, the collapse of crude oil prices in Asia and the exchange rate: all of these affected the automotive industry.
However, the executive clarified: "We lost volume, but not market share. We continue to be the leader in the luxury segment with BMW and Mini, in Latin America and Mexico, but we are very affected by the crisis".
Unlike China, where a V-shaped crisis was observed, as they entered the crisis very quickly but also left it quickly, in Europe and America an L-shaped crisis is expected, with a more prolonged impact. "We estimate that in the region, both in Mexico, the market and our business will fall equally between 20 and 30 percent".
Traditionally, the luxury car segment is less vulnerable to economic impacts, but this time it is not, as it will be affected by the economic issue and by social distance measures. The measures that BMW is taking to recover the market are, in principle, to approach their customers, not only are quantitative or financial measures, but with the treatment, they give them by being a one-to-one contact.