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IHS Automotive principal analyst Tim Urquhart on the BMW 2 Series Gran Tourer 7 seater

BMW has announced the latest model in its rapid programme of range expansion which has led to the brand constantly moving into new segments in recent years in the form of the 2 Series Gran Tourer. IHS Automotive principal analyst Tim Urquhart explains what this might mean to the market
BMW 2 Series Active Tourer Gran
The new BMW 2 Series Gran Tourer

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15 February 2015

Rear three quarters view of BMW 2 Series Gran Tourer
Rear three quarters view of BMW 2 Series Gran Tourer

Ensuring maximum flexibility in the use of the seating as befits its status as an MPV the middle bench of seats has a 40:20:40-split backrest, and it also allows three child seats to be fitted. Further enhancing the model’s credentials as a family wagon, BMW has introduced some novel innovations on the 2-Series Gran Tourer.

BMW continues to move into new segments by launching a seven-seater MPV which is aimed squarely at mid-market offerings such as the Vauxhall Zafira Tourer and Ford Grand C-Max

The “myKIDIO” app, which will initially only be available in Germany, provides appropriate content for children and families such as films and audio books on tablets such as the Apple iPad. The app is controlled via the iDrive Controller and Control Display as soon as the mobile device is connected to the car.

Outlook and implications of the new BMW 2 Series Gran Tourer

The “myKIDIO” app that BMW is launching on the 2 Series Gran Tourer shows the audience that BMW is targeting, with young families obviously very much in the mind of the product planners. This is after the Active Tourer appeared to be aimed very much at the “silver surfer” generation, especially when the associated marketing and advertising for the model was viewed. They are the first front-wheel drive models in the BMW range and the 2 Series Grand Tourer and represent a departure both in terms of product segment and drivetrain format.

Mid row of seats with child seats in place in the new BMw 2 Series Gran Tourer
Mid row of seats with child seats in place in the new BMA 2 Series Gran Tourer

The Grand Tourer is aimed squarely at seven-seater MPVs which are offered in the European market by traditional mid-market OEMs, such as the Vauxhall Zafira Tourer, Ford Grand C-Max seven-seater and the Renault Grand Scenic. A lot will depend on the pricing proposition of the BMW in comparison to these mid-market models.

Autocar reported the entry-level price in the UK as GPB24,175 for the 218SE. This is against an entry price of GBP21,840 for the Zafira Tourer and GBP19,785 for the Grand C-Max. The C-Max and Zafira Tourer are also likely to be available with significant discounts, although there is also anecdotal evidence that significant discounts have also been available on new BMW model ranges in the last 12 months.

BMW’s strategy appears to be to line up offerings against mid-market OEMs and take sales from these vehicles and brands, with some customers always willing to pay more for a premium badge on their vehicle.

IHS Automotive forecasts peak sales of 55,000 units for the Gran Tourer, around 20,000 less than the peak of the Active Tourer. However, these vehicles also represent the most extreme examples of BMW’s range expansion strategy and it remains to be seen whether BMW will continue to move into new segments.

There is little doubt that a lot of these niche models will have their ROI closely attended to by product planners and company accountants and some models may be cut in the future.

For example the 5 Series GT remains in IHS Automotive’s forecast despite peak sales of just 24,000 units in its current cycle.

Meanwhile Mercedes-Benz has quietly dropped its R-Class from its line-up as it struggled to muster sale of 10,000 units globally towards the end of the its model cycle.

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