Mini continues to break sales records around the world but competition is increasing says global sales chief, Graeme Grieve.

The competition is coming from Fiat which is expanding its 500 line-up and entries such as the Citroen DS3. Grieve also believes the new Vauxhall Adam will grow the segment, although it will be no threat to Mini.

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“We will keep our premium price and position and we will also be looking at new niches,” he said.

This will almost certainly lead to yet more Mini bodystyles stretching the line-up from the current seven, possibly up to ten, said Grieve.

Rising sales globally and the introduction of the Paceman this year with more to come, will stretch production at the Mini factory in Oxford to the limit.

Assembly of some models has already been contracted out to Magna Steyr in Austria and there are also plans to move some production to Nedcar in Holland, the factory vacated by Mitsubishi at the end of last year.

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Grieve said this is unlikely to happen this year, but could start in 2014. “We made 301,526 Minis last year, 200,000 in Oxford and 100,000 in Austria,” he said.

“We are continuing to invest in Oxford but the plant does have its limitations, mainly because it is surrounded by housing and there is no room for expansion.”

Sales of Mini grew 50% in China last year to 23,000 although it still lags behind the US, which remains number one with 60,000 sales, just ahead of the UK

“The interesting thing about China is that Mini has no cultural history,” said Grieve. “It is new to Chinese customers and the brand is gaining popularity all the time.”