The Hindu Business Line : BMW to launch 3, 5 series soon

At premium end
The market size of the premium end of the segment in India is between 4,000 units and 4,500 units with Mercedes Benz leading the pack.

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Bangalore March 3 BMW plans to launch its 5 series passenger cars in June and expects to sell 1,000 cars in a year's time as it aims to snatch the lead from its German competitor Daimler Chrysler's Mercedes Benz in India.

"We are leaders in every market we are in. We plan to repeat our success in India too," the BMW India President, Mr Peter Kronschnabl, told Business Line.

He said the 3 series of cars, priced between Rs 27 lakh and Rs 33 lakh, would be launched towards the end of March while the 5 series, priced at around Rs 37 lakh, willbe launched during June.

For the year, there will be seven engine derivatives and two models.

The cost of each vehicle will be at least 40 per cent less than if they were sold as CBUs (completely built units) he said.

The vehicles would be attracting less duty at 65 per cent as CKD (completely knocked down) units as against the aggregate of 111 per cent duty and taxed as CBUs.

There are plans to bring the 7 series and M series sports cars as well.

The market size of the premium end of the segment in India is between 4,000 units and 4,500 units with Mercedes Benz leading the pack. "By 2012, we expect this size to double with at least three players in the segment, of which we plan to take up the leadership position," Mr Kronschnabl said.

Chennai plant

The Chennai plant, built at an investment of around Rs 110 crore, has a capacity to assemble about 1,700 cars in one shift per year. "We can add another shift if the demand starts picking up," he said.

BMW willalso add more dealers in a couple of years. From the current tally of eight in six cities, the number will rise to 12 in 10 cities. Each of the BMW dealers has spent up to $2 million in setting up the showrooms and for other related services.

Insurance tie-up

BMW has also tied up with ICICI on retail financing and Bajaj Alliance for insurance. "What the customer will be getting will be a complete BMW branded package at each of the showrooms," he said.

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