BMW apologises for Shanghai auto show ice cream meltdown

BMW has been forced to apologise in China after being accused of discrimination at the Shanghai auto show when giving out free ice creams.

A video on China’s YouTube-like platform Bilibili showed the German carmaker’s Mini booth at the consumer show offering free ice cream to foreign visitors, but turning away Chinese customers.

The ice cream campaign “was intended to offer a sweet dessert to adults and kids visiting the show,” the Mini China account said in a statement posted later on Chinese microblogging site Weibo. “But our sloppy internal management and our staff’s failure of duty have caused you unpleasantness. We offer our sincere apology for that.”

A later statement from Mini globally said the business “condemns racism and intolerance in any form” and that it would ensure it did not happen again.

The hashtag “BMW Mini booth accused of discrimination” had amassed more than 190mn views and 11,000 discussions on Weibo as of Thursday afternoon.

The biennial motor show is one of the largest motoring events in the Chinese calendar, and a chance for international carmakers to show off their latest products in an increasingly competitive market.

For years China was the global industry’s main profit driver as local consumers sought the prestige of driving international brands.

But a marked improvement in the quality of vehicles from domestic brands and start-ups has meant fiercer competition, especially in the fast-growing area of electric vehicles.

Volkswagen has flown several senior executives to the show, as the German carmaker tries to arrest falling market share in the region that is its largest profit contributor.

The Mini apology is not the first time that global brands have suffered public relations backlashes in the market.

Mercedes-Benz had to apologise in 2018 to Chinese consumers for an Instagram post that featured a quote from the Dalai Lama, the Tibetan spiritual leader, who is considered a dangerous radical by Beijing.

Tesla was also criticised by Chinese state media after a consumer protest on its stand at the 2021 Shanghai auto show by owners alleging problems with their vehicles. The US carmaker subsequently apologised for not dealing better with customer complaints.

Overseas car brands have been rapidly losing market share to Chinese rivals, with domestic carmakers on track to sell more passenger vehicles than foreign rivals in 2023.

Warren Buffett-backed BYD sold more than three times the number of units than Tesla did in China in the first quarter of the year.

BMW’s Mini brand sold 28,700 cars in China last year, accounting for 3.63 per cent of the group’s total annual sales in the world’s biggest automotive market.

The company’s joint venture with Great Wall Motors is due to begin producing an electric version of the Mini later this year.

Additional reporting by Peter Campbell in London