BMW Group in Asia achieves new sales records in 2006

Official Press Release by BMW

Retail figures up 13.8%

• Asia registers strongest market growth compared with other global regions
• China: largest BMW Group sales growth
• Fifth Asian production plant to be opened in India

Singapore

The BMW Group posted strong growth results in Asia for 2006, beating previous
records.

With the BMW Group achieving sales of 126,949 vehicles, the company has again
achieved a new sales record in Asia, making the group the leading car company
in the region’s premium segment for the 4th consecutive year.

In all, retail figures for BMW, MINI and Rolls-Royce cars delivered to customers
were up 13.8% (previous year: 111,571).

Sales of the BMW brand gained 15.5%, rising from 95,116 units to 109,848 units.

MINI continued to enjoy growth in Asia with sales of 16,959 cars (+3.7% / previous
year: 16,353), while Rolls-Royce delivered 142 Phantoms to customers in Asia
last year (previous year: 102/+39.2%). BMW Motorrad delivered 3,620 (previous
year: 3,622) motorcycles to Asia.

The results underline the leading position of all three premium brands of
the BMW Group in Asia, underscoring the Group’s record performance and
market leadership: On a worldwide basis, BMW Group increased sales by 3.5% with
the delivery of 1,373,970 vehicles (previous year: 1,327,992). Global sales
of the BMW brand, at 1,185,088 vehicles, outstripped the previous year’s figure
(1,126,768) by 5.2%.

Group revenues increased by 5.0% to euro 48,999 million (2005: euro 46,656
million) compared with the previous year. Revenues generated by the Automobiles
segment went up by 4.2% to euro 47,767 million (2005: euro 45,861 million).
The Motorcycles segment generated revenues of euro 1,265 million (2005: euro
1,223 million/+3.4%), whilst revenues from financial services rose by 17.8%
to euro 11,079 million (2005: euro 9,408 million).

“The BMW Group grew more strongly in Asia than in any other region of
the world,” stated Dr. Michael Ganal, Member of the Board of Management
of BMW AG, who announced the latest results. “This means that we are going
to strengthen our presence in the individual markets in the years to come. We
will continue our product and market initiative and invest further.”

Strong sales growth in key Asian markets

In 2006, the BMW Group maintained strong sales increases in its key Asian
markets, beating industry growth levels in most of the car markets and receiving
accolades for products and brand alike.

In region China (covering Mainland China, Hong Kong, Macau, Taiwan), BMW Group
car sales experienced the highest growth rates in Asia with a total of 44,700
vehicles sold (+35.4% / previous year: 33,020). In Mainland China, Group sales
of 36,357 BMW and MINI vehicles jumped by over 50% (previous year: 24,025).
Growth was spurred by the BMW 3 and 5 Series launched in fall 2006, while the
BMW 7 Series, X5 and X3 secured market leadership in their respective segments.
Sales included a BMW 5 Series Long Wheelbase model designed specifically for
the Chinese market.

Mainland China emerged in 2006 as the second largest market for the BMW 7
Series worldwide with sales of 7,522 units. (+ 32% / previous year: 5,700).
BMW achieved an above 20% brand share of the premium segment in the Chinese
Mainland, earning the accolade “the most desired brand” and “the
most valued brand” in
media surveys ( auto motor und sport China, Feb.1, 2007 ; Fortune (China), July
2006).

In Japan, the largest individual market of the BMW Group in Asia, a new retail
record was reached with sales of 62,068 vehicles (+5.6% / previous year: 58,767).
Contributing to the sales success were five anniversary BMW 1 Series, X3, X5,
3 Series and 5 Series models, launched on the occasion of the BMW Japan Corporation’s
25th anniversary.

The reputation of the BMW brand was further strengthened in a highly competitive
market with a No.1 ranking in the J.D. Power Asia Pacific Sales Satisfaction
Study.
Japanese customers bought more than 13,400 MINI vehicles – including a
limitededition model “MINI Designer’s Choice”, specially created
for this market. Limited
production capacities at Plant Oxford resulted in a sales increase of 1%, although
demand for the MINI was in reality much higher.

In Korea, the third largest growth market of the BMW Group in Asia, sales grew
by over 10%, to a total of 7,250 vehicles (previous year: 6,682 units). The
BMW 3 Series (the segment leader) and the BMW 5 Series proved to be best-sellers.

MINI brand sales – again affected by supply from Oxford
– decreased by 9.1% to 700 vehicles (previous year: 770)

In Singapore, more retail records were broken, with BMW Group sales rising
to 3,857 vehicles (+ 6.4%; previous year: 3,624). The BMW brand achieved a retail
volume 15% higher than its nearest competitor, reinforcing its market leadership
position in the premium segment.

The BMW 3 and 5 Series yet again proved to be sales successes in their segments,
generating over 70% of BMW sales. The 7 Series, used to transport world leaders
in Singapore during the International Monetary Fund and World Bank Meetings
in 2006, also continued its successful run.

MINI sales also increased by almost 20% to 199 units (previous year: 166 units).
While the overall premium market in Thailand underwent a 14% decline (compared
with the previous year) due to political turmoil, the BMW Group still delivered
nearly 3,100 vehicles – 9% over the previous year.

The BMW brand was the only premium brand in Thailand to achieve a two-digit
growth rate with a volume of 2,822 vehicles (+13%; previous year: 2,502 units).
The BMW 3 and 5 Series were key growth drivers in a depressed market. The BMW
3 Series retained segment leadership in 2006. The BMW X3 also gained substantial
popularity, X3 retail volume having quintupled in only a year since the start
of local production at Rayong.

The MINI brand suffered due to supply issues. Although retail volume of the
MINI brand decreased to 276 vehicles, the BMW Group still held a 40 per cent
share in the premium segment in Thailand.

Malaysia saw record sales, where the BMW Group delivered 3,472 vehicles to
customers (+8%; previous year; 3,213 units). The results, which flew in the
face of a
declining market, exhibited the fastest growth rate in its market segment. Like
the 3 Series, the BMW 5 Series achieved market leadership.

MINI did not attain the previous year’s retail level, with 170 vehicles
sold, but the launch of the new MINI at the end of March is expected to boost
sales.

In the Philippines, the BMW Group secured market leadership in the premium
segment with a market share of 53 per cent and a retail volume of 803 units.
(Previous
year: 802 units). The BMW brand received two distinctions at the Philippines’
Car of the Year Awards: The BMW 5 Series was named “Best-in-Ultra-Luxury-Class“,
and the X3 received the award for “Best-in-Technical-Innovation“.

The premium segment in the automotive market in Indonesia registered a decline
due to economic pressures, resulting in overall sales of 1,562 vehicles, a fall
of 58%
compared to 2005. Correspondingly, BMW Group sales decreased to 600 vehicles.
(- 52%; previous year: 1,250 units). Yet, however, BMW received the most number
of accolades in this market, garnering ‘Indonesia Car of the Year 2006’
for the 325i in the category “Best Premium Sedan“ as well as for
the 730Li in the category “Best Exclusive Sedan“ plus the Autobild
Indonesia Award 2006 for the 3, 5 and 7 Series. BMW was also honored with the
“Best in Indonesia Customer Satisfaction Award“, “Indonesia
Most Favorable Brand 2006“, and attained the number one ranking in the
“Indonesia Customer Satisfaction Index“ study published by J.D.
Power Asia Pacific.

BMW Group to increase commitment in Asia

BMW Group officially opened its subsidiary “BMW India Private Limited”
recently at Gurgaon, Delhi and is due to open its production plant at Chennai
in Southern India, creating its fifth production location in Asia. Production
of the BMW 3 Series is expected to commence at the end of March 2007, while
the BMW 5 Series will be produced from May.

The BMW 3 and 5 Series will have stronger underbodies, higher ground clearance
and advanced fuel filters.

BMW India will be the only car manufacturer in India to offer financial services
such as direct Wholesale financing and Retail financing.

Currently, BMW Group India’s workforce comprises 200 employees, while
another 600 jobs will be created at its retail and service partners. Through
local production and expansion of its dealership network to six outlets, BMW
Group intends to increase its retail volume to 1000 units as early as this year.
Last year, the BMW Group sold 257 BMW vehicles in India.

In Malaysia, BMW Group has just concluded an agreement with Sime Darby Berhad
to acquire the local enterprises SimeLease and its subsidiary SimeCredit, a
precursor to BMW Financial Services entering the Malaysian market, pending the
Foreign Investment Committee’s approval.

In Singapore, the BMW Group strengthened its presence with the launch of the
BMW DesignworksUSA Asia studio as well as the opening of the BMW Group Asia
Pacific Treasury Center last year

Product and market initiatives to continue – EfficientDynamics

Key product highlights of the BMW Group for Asia in 2007 include the new 3
Series Coupé, the new MINI, the Z4 Coupé and the Z4 M Coupé
as well as the new X5. In early January, the new BMW 3 Series Convertible and
the convertible model Rolls-Royce Drophead Coupe made their world premieres
at the Detroit Motor Show.

The efforts and innovative solutions in the field of sustainability have enabled
the BMW Group to continuously improve the performance of its premium vehicles
while reducing fuel consumption. This concept is called “EfficientDynamics“.
It means, that each model series and various technology applied to a vehicle
has to contribute to the overall target of reducing fuel consumption. Therefore
the company improves continuously its engines. Technological improvements range
from light-weight construction, aerodynamics, rolling resistance and energy
management of the powertrain.

Currently the BMW Group is also developing a hybrid powertrain. The company’s
research on a long-term sustainable solution to future individual mobility is
being
translated to commercial production of the BMW Hydrogen 7, an innovative limitedseries
vehicle powered by hydrogen.

Outlook for 2007
The forecast of the BMW Group for the year remains optimistic. “We expect
the BMW Group’s retail growth to stay on a high level. This year, we already
plan to meet our 2008 retail target of 1.4 million vehicles. Three years ago,
we set an annual retail target for Asia of 150,000 vehicles to be sold by 2008.
We also intend to move a fair step closer to this target this year,” said
Ganal.

On the longer-term outlook in Asia, Ganal said, “The BMW Group considers
itself a long-term partner in the region Asia. This means that we are going
to strengthen our
presence on the individual markets in the years to come and we plan to invest
further in these markets.”