Incentive program

The Chinese government recently launched an incentive program for fuel-efficient vehicles in five cities that provides up to 60,000 yuan ($8,788) in subsidies toward the purchase of plug-in hybrid and pure electric cars.

Stark said it's a good idea to subsidize new technologies at the beginning, but over the long haul technologies will only work when economically feasible.

The subsidy currently only applies to locally made vehicles, so foreign carmakers can only benefit when producing new-energy cars at their Chinese joint ventures.

Stark said that the company will "surely" have future local production of alternative-energy vehicles in China and would like to use local components in them.

The company broke ground for a new plant at its joint venture with Brilliance Auto in Shenyang earlier this month that is scheduled to began operation in 2012 and eventually boost BMW's local capacity to 300,000 units a year over the long term.

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While analysts are beginning to express concerns about overcapacity and excess inventories in the overall Chinese auto market, Stark said that BMW has a long-term commitment that does not change by quarterly performance.

BMW posted brisk sales in the first five months of this year, delivering almost half of its yearly goal of 120,000 units.

Stark said at the moment the company can barely keep up with the demand. "Every car that is produced, every car that is imported is sold almost the next day," he said.

Due to such robust activity, Stark said quality rather than quantity is his watchword.

"I always say my target is to be the most successful, but part of being successful for me is to be the most respected brand."

"So the quality of management, products, service and networks - those are what will carry us to the future."