Profile: MINI

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Manufacturer: MINI  Total sales 2013: 305,030  Headquarters: Oxford, UK  Share of BMW sales: 18.4%

 

American success story…

Since its purchase by the BMW Group in 2000 as part of an acquisition deal for the Rover Group, MINI has gone on to capture the imagination of international buyers in a way that few could have predicted. Key to MINI’s enduring success is the fashionable, plucky, ‘Cool Britannia’ image that was cemented by the brand’s starring role in the 1969 classic The Italian Job, and has infused the new generation of MINIs now available in more variants than ever before.

MINI recorded 305,030 total sales in 2013, up 1.2% over 2012 figures. The USA remains the largest market for the brand, with a record 66,502 cars sold, followed by the home-market of the UK with 51,933 vehicles registered.

Its soaring popularity in the USA has been brand’s biggest international success story, carving out a niche for its supermini range in a market where saloons and minivans are the norm. It is perhaps as a result of this preference for larger models that the range’s bulkiest model, the compact crossover Countryman SUV, has been so successful with American buyers, coming in just ahead of the ever-popular Hatch as the brand’s best-selling variant in the market in April 2014. As part of its ongoing strategy for the US market, MINI recently announced plans to launch a diesel variant of the Clubman model in late 2016/2017.

MINI has been quick to capitalise on the opportunities offered by the economic boom in Asia, with mainland China accounting for 390,713 deliveries of BMW and MINI vehicles in 2013 – an increase of 19.7% over the previous year. The BMW Group also posted double- digit growth in many other Asian territories, including South Korea, Japan and the Middle East, with MINI’s strong brand identity helping to capture interest in an increasingly crowded market.

Continuing its global expansion, a year after launching the MINI range in India, the brand began local production of the Cooper D and Countryman in Chennai in Spring 2013. MINI has five showrooms in India – in Delhi, Mumbai, Hyderabad and Bangalore, and while market penetration remains low compared to other territories (418 total sales in 2013), MINI is confident its share will grow as awareness increases.

To implement its strategy for global growth, with sales of over two million cars forecast in 2016, MINI has also expanded production to The Netherlands, with production of the new Hatch scheduled to start at the BMW Born Plant from summer 2014. The BMW Group will benefit from the favourable location of the VDL Nedcar plant in terms of logistics and proximity to the core MINI production network in the UK, with plants in Oxford, Swindon and Hams Hall.

April 2014 saw a year-to-date sales dip of -13.2% for the brand, with 78,785 units sold. MINI attributes this slump to the imminent launch of the new core model Hatch, causing potential buyers to delay their purchase in favour of the new variant. With a strong recorded interest in the new model, the company is confident there will be a swift recovery in the retail figures later this year.

 

Five-door hatch targets fleet sales

MINI will launch a five-door version of its smallest Hatch model this autumn, the first time in its 55-year history that the supermini has ever had rear doors.

Debuting with the four Cooper trim levels in October, followed by the One and One D in November, the additional bodystyle allows MINI to compete with key premium rival the Audi A1 Sportback, and to cater for five-door only fleet policies without moving drivers up to the larger Countryman crossover.

Gaining 72mm in wheelbase and 161mm in length, used to increase legroom and boot volume respectively, the five-door Hatch is designed to provide a solution for customers who would otherwise defect to other brands for extra space, as well as targeting conquests from other brands and growing overall sales. There is a €750 price increase for the larger bodystyle.

Speaking to IFW, corporate development manager, James Morrison, outlined the brand’s expectation for the model: “We certainly have ambitious plans for the new MINI five-door Hatch, particularly in the corporate sector. Looking at our competitors in this segment, it is clear that five-door vehicles outsell three-door models by a considerable margin, and when we specifically look at corporate sales, there is an even stronger bias towards five-door models. We hope to serve additional customers for whom the three-door Hatch was not previously an option.”

MINI has previously hinted that the next Clubman could also follow suit. The concept car, shown at the Geneva Motor Show in March, featured a pair of rear doors instead of the controversial single rear-hinged Club Door used on the current model.

MINI is also continuing to trial its MINI E. concept, which represents the brand’s contribution to the BMWi electric vehicle project. First unveiled in 2009, MINI claims a range of 150km and a power output of 204hp for the Cooper conversion, which has already undergone strenuous testing in markets including the USA, UK and China.

At the other end of the spectrum, MINI unveiled its Superleggera TM Vision concept on the shores of Lake Camo in May 2014. An exclusive interpretation of an open-top two-seater created in partnership with Touring Superleggera, the agile two-seater boasts an electric drivetrain, designed to give the car a distinctly modern driving dynamic.

The brand has no current plans to put either concept into full production, instead using the projects to trial new R&D techniques and demonstrate the versatility of the range.

 

View from the top

James Morrison, corporate development manager at MINI UK, explains how an expanded model range has helped the brand target business sales… 

How has MINI performed globally so far in 2014?

The UK is the second largest market for MINI in the world. We’ve had a strong start to the year with 16,138 sales up to the end of May and we now have the strongest forward order bank for MINI Hatch in the brand’s history. We expect our 2014 sales to exceed those in 2013 by the end of the calendar year.

 

How important has the Countryman been for MINI's fleet sales?

The MINI Countryman has been a fantastic success for MINI fleet sales in the UK. It has enabled us to win business with fleets where specific criteria exist, including the number of doors or seats. In the UK, we further enhanced this position last year with the introduction of the MINI Countryman Business model – an enhanced, fleet-specific offering which is priced very attractively.

With the introduction of the new MINI Countryman, all petrol and diesel variants are now EU6 compliant. This enhancement, combined with reduced CO2 emissions on a number of variants, will ensure the MINI Countryman is well placed within its competitive field.

 

How has the Clubman performed against expectations?

The MINI Clubvan captured the hearts and minds of many small businesses when we started sales last year. It filled a gap in the market for a small, premium van with high desirability. Many business customers told us that MINI Clubvan was the ideal vehicle to sign-write because it matched their premium aspirations. In the UK, the MINI Clubvan outsold our sales estimates and the production capacity we had available.

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