German luxury car maker BMW is in talks with Chinese regulators to sell its vehicles to high-ranking officials, a lucrative market segment formerly dominated by rival Audi, state media said Friday.
"The government purchase sector is important for us and we have the confidence to enter it," said Christoph Stark, president and chief executive officer of BMW Group China, according to the China Daily.
Industry data showed that officials at all levels in China spent 70 billion yuan (9.1 billion dollars) buying vehicles last year, the report said.
This has made government purchase a very attractive market segment that both foreign and domestic car makers are trying to tap.
The sector was dominated by Audi with its popular A6 sedans until Mercedes-Benz's China-made sedans made their way to the governments' shopping list earlier this month, the report added.
Last November, BMW's joint venture with Brilliance China Auto in northeast China launched a new series of sedans specifically aimed at the government segment.
BMW's 2006 sales jumped 51.3 percent from a year earlier to 36,357 units, including 22,550 locally made 3 and 5 Series sedans.
Audi sold 80,808 units in China last year, up 39 percent from 2005 and Mercedes-Benz's sales in China and Hong Kong rose 32 percent to 21,200 cars, the report said.
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