BMW eyes government contracts

BMW is pitting itself against Audi and Mercedes-Benz to persuade local governments in China to include its sedans in their procurement lists, the Oriental Morning Post reported. The market for government vehicles has grown rapidly in recent years. Governments at all levels spent US$9.84 billion (RMB70 billion) on vehicles in 2006, mostly on high-end models, and the annual shopping bill is expected to increase by US$1.41 billion (RMB10 billion) every year. Audi was the number one luxury vehicle manufacturer last year, selling 100,000 sedans in China. BMW’s sold 61,098 luxury vehicles and Mercedes-Benz 30,600.