BMW AG delivered 43,441 vehicles in China in January, up 8.4 percent from the same period a year earlier.

 

The German automaker maintained the modest growth pace that it set in 2015, when deliveries for the year edged up 1.7 percent to 463,736 vehicles. BMW has cited China's sluggish economy for "significant headwinds" that affected the entire luxury sector.

 

To prop up sales, BMW is expanding its lineup. At the Guangzhou auto show in November, the automaker unveiled a concept car that is likely to be badged as a 1-series sedan. The four-door car would target young, wealthy Chinese consumers.

 

The company also is boosting production in China. BMW has opened an engine plant and foundry in Shenyang to produce turbocharged three- and four-cylinder engines. The plant will supply up to 300,000 engines a year to assembly plants in Dadong and Tiexi.

 

Despite BMW's efforts, however, rival Mercedes-Benz is closing in. Last month, Mercedes deliveries in China totaled 42,671 vehicles, up 52 percent. China's top luxury brand, Audi, sold 54,402 vehicles last month, up 6 percent.