The Hindu Business Line : BMW to take on Mercedes with competitive pricing

BMW India's car plant is yet to roll out its first customer car, but round one in its sparring match with the other German super luxury passenger car manufacturer Mercedes Benz is already set to begin.

BMW India recently communicated to its dealers the proposed ex-showroom prices for its India-spec cars. And BMW has clearly chosen the engines and their price positioning to ensure that its cars will nip at the heels of competitors.

Uniform pricing

The base variant of its entry-level super luxury 3-Series sedan will be priced at Rs 26.95 lakh, ex-showroom. BMW is to also adopt a uniform pricing policy for all its cars nationwide.

The first car to roll out of the BMW India plant near here will be a 3-Series sedan. And the company has chosen two petrol engines for the 3-Series with the 320i and the 325i and a two-litre diesel engine in the 320d. While these three will be manufactured at the facility here, for its imported 7-Series saloon, BMW has chosen the 730Ld, which is a long wheelbase version and will feature a 3-litre diesel engine.

BMW India currently has eight dealers in six metros, including two each in Mumbai and Delhi. These dealers will offer the BMW 320d at Rs 29.7 lakh, the 325i at Rs 32.5 lakh and the imported BMW 730Ld at Rs 74 lakh (all ex-showroom).

Taking on Daimler

These prices pit the 3-Series sedans directly in competition with DaimlerChrysler India's (DCIL) Mercedes Benz C200K petrol and the C220 CDI diesel sedans. The two brands' cars are also neck-to-neck in terms of engine performance. The 7-Series - 730Ld - luxury saloon's price is also extremely close to the pricing strategy that DCIL has adopted for the new Mercedes Benz S-Class - S350L. The difference of course being that BMW has chosen a diesel engine in the 730Ld and the Mercedes Benz S350L, on the other hand, sports a V6 petrol engine.

Speaking to Business Line, Mr Peter Kronschnabl, President of BMW India, said that all the BMW models sold here would feature automatic transmission and leather upholstery as part of standard fitment. He added that the company's plant had commenced pilot production and the first non-customer car rolled out earlier this month.

Evaluating mini cooper

The plant is to be officially inaugurated in March this year and the first customer delivery cars will roll out afterwards. While the 3-Series will be the first model to roll out of the plant, BMW India's local manufacturing plans include the 5-Series sedans. This would be the face-lifted 5-Series sedans that are due out soon for markets worldwide. The India-spec 5-Series sedans would roll out by May-June this year.

The 5-Series sedans would be made available with two petrol and two diesel engines. Mr Kronschnabl also mentioned that the company is in the process of homologating the BMW X3 and the X5 sports utility vehicles, which may be imported into the country as completely built units by the middle of this year. The company is also evaluating the feasibility of bringing in the Mini Cooper by 2009, if customer studies in India show that there will be a consistent demand for this performance small car.

Mr Kronschnabl also mentioned that BMW India has entered into a preferred financing agreement with an Indian bank for retail (customers) and wholesale (dealers) financing of its cars. The contract, which is yet to be signed with this as yet undisclosed Indian bank, will help the company launch a BMW branded financing product.