The brand story of electric MINI is hard to tell

Text

The MINI brand, which has progressed very slowly domestically, has rarely been seen since the joint venture between Great Wall and BMW in 2018. In the past two years, the most notable news has been the acquisition of production qualifications in 2023 and the launch of two new models, the MINI COOPER and MINI ACEMAN, in 2024.

Recently, MINI has faced more criticism in the market due to the recall of two domestic new models shortly after their launch due to quality issues with the braking system.

Produced by Beam Automobile Co., Ltd., a joint venture between BMW Group and Great Wall Motor with a 50:50 shareholding ratio, MINI's domestic models are backed by solid overall strength and reliable manufacturing technology. However, even with these advantages, Beam Automobile's new models have been recalled shortly after entering the market.

In fact, recalls are a routine practice in the automotive industry, and they are not necessarily a bad thing. However, Beam Automobile's new models being recalled within three months of entering the market not only undermines consumer confidence in the brand but also affects its market reputation, adding more uncertainty to MINI's path towards electrification.

An inauspicious start

Many people may not be familiar with Beam Automobile. It is a joint venture established in 2018 between Great Wall Motor and BMW Group to realize their respective new energy transformation plans. It is Great Wall Motor's first joint venture project and BMW Group's first pure electric vehicle joint venture project globally.

Both parties demonstrated their sincerity at the beginning of their cooperation, signing a joint venture operating contract and subsequently a vehicle joint venture project investment agreement with relevant departments in Zhangjiagang City, Jiangsu Province, within just one month. The construction of Beam Automobile's factory in Zhangjiagang City, Jiangsu Province, commenced the following year, with pile driving starting in 2020.

At its inception, Beam Automobile's projects appeared to be proceeding smoothly and normally, and its establishment was significant for the development of the automotive industry. Great Wall Motor and BMW Group pioneered a new approach by forming a joint venture without merging operations.

Beam Automobile's mission is to develop a new generation of pure electric vehicle platforms jointly with BMW and Great Wall Motor, and to produce electric vehicles under both the BMW MINI and Great Wall Motor brands. According to the initial plan, Beam Automobile would focus on technology and new vehicle development and manufacturing without establishing separate sales channels. Its products would enter BMW Group and Great Wall Motor's respective sales and service networks by brand, with sales not only in China but also exports to regions such as Europe.

At Beam Automobile's inception, the industry had high expectations for the brand due to the involvement of two giants, Great Wall Motor and BMW Group, which ensured sufficient funding and technology for vehicle production. Moreover, the new energy vehicle market was entering a period of rapid growth in 2018, with high market enthusiasm for independent new energy vehicles, providing favorable conditions for Beam Automobile's development. Therefore, industry insiders described the cooperation between Great Wall Motor and BMW Group as a "win-win situation."

However, Beam Automobile's development fell short of expectations. After its establishment in 2018, there was limited information about the brand in the market, apart from updates on factory construction. It was not until 2023 that Beam Automobile re-emerged in the public eye with the announcement of its independent production qualifications. In 2024, Beam Automobile launched two new models: the MINI COOPER and MINI ACEMAN.

In its five years of operation, Beam Automobile has only introduced two new models, indicating a slow pace in product innovation. Furthermore, the quality control issues that led to the recall of its new energy vehicles within three months of their launch have raised doubts about the brand's manufacturing capabilities.

Disagreement among shareholders?

Theoretically, the localization of MINI's pure electric vehicles benefits both BMW and Great Wall Motor. Localized production can lower vehicle prices, helping BMW increase its market share in China, while Great Wall Motor can expand its new energy product line with the MINI brand.

However, the relationship between BMW and Great Wall Motor may not be as harmonious as it seems. Reports suggest that many cooperation details were not finalized when Beam Automobile was established, leading to disagreements and inconsistencies in project development.

Moreover, BMW Group and Great Wall Motor reportedly have different attitudes towards Beam Automobile. BMW Group is more proactive, providing technology and brand support, while Great Wall Motor takes a more passive role, with limited involvement in product development and manufacturing. This may be related to Great Wall Motor's new energy strategy.

Despite launching multiple new energy products, Great Wall Motor has not demonstrated strong commitment to technological innovation, brand building, and market expansion, which has limited its support for Beam Automobile's domestic MINI models. This has resulted in a lack of resources and technical support for Beam Automobile's product development, leading to subpar design quality.

Meanwhile, competitors like NIO, Xpeng, and Tesla have emerged and gained market share, overshadowing Beam Automobile. Despite the backing of BMW and Great Wall Motor, Beam Automobile lags behind other mainstream brands in terms of operations, product development, and market deployment.

Beam Automobile's market positioning is awkward, as it neither complements Great Wall Motor's new energy products nor aligns with BMW Group's pure electric vehicle lineup to compete in the high-end market. This poses a significant challenge for the brand.

Where to go from here?

Time waits for no one, and the automotive market has undergone significant changes during Beam Automobile's five years of product development. Competition in the new energy vehicle segment has intensified, with independent brands rising rapidly and competing fiercely on configuration, technology, and price. The niche market for luxury compact vehicles, where MINI's domestic models are positioned, is also crowded with competitors like smart and Zeekr.

smart, a joint venture brand acquired by Geely in 2019, has developed much faster than MINI in China. With 67,024 units sold globally in 2023, including 42,292 domestically and 24,732 exports, smart has established a strong presence in the luxury compact car segment.

In contrast, MINI's sales in China have declined from 34,100 units in 2019 to 18,200 units in 2023, with no separate figures available for 2024. Although MINI has launched two domestic pure electric models, it may not be able to reverse the sales decline given the challenges in the compact electric vehicle segment.

The small pure electric vehicle market is highly polarized, with a few mainstream models dominating most of the market share. Popular models are affordable, with prices mainly below 100,000 yuan. However, domestic MINI models target the luxury compact segment, with prices around 200,000 yuan.

Given the current economic downturn and shrinking consumer demand, it will be difficult for domestic MINI models, with their luxury and personalized design, to stand out. Moreover, the EU's tariff measures may impose a maximum tariff of 38.1% on domestic MINI electric vehicles exported to Europe, further complicating their market prospects. The recent recall of new models adds another layer of uncertainty to Beam Automobile's development.

In conclusion, domestic MINI brand faces numerous challenges in terms of quality, marketing, and distribution channels. Additionally, the design of the MINI COOPER and MINI ACEMAN pure electric vehicles appears to retain BMW's MINI fuel vehicle genes, raising questions about Great Wall Motor's influence in the design process. Whether the luxury and personalized nature of domestic MINI electric vehicles can attract young consumers in a highly competitive small electric vehicle market remains to be seen. It is clear that domestic MINI electric vehicles face an uphill battle to establish themselves in the high-end market.