The Hindu Business Line : BMW chalks out product expansion plans

While currently it offers a few imports like the 7-Series luxury saloon and the 6-Series coupe and convertible, the company is considering to import and launch cars like the 3-Series convertible and coupe and the new X6 hybrid concept that was showcased at the Frankfurt Motor Show this year.

BMW, the German luxury carmaker, has invested about Rs 110 crore in setting up the Indian operations, including the Chennai assembly plant, where its 3-Series and 5-Series sedans are being assembled. To expand its brand reach, the company is also planning to set up a BMW Pavilion in Delhi by the second quarter of next year, which will not only have its cars on display, but also a lot of other concepts.

In the meanwhile, the BMW X5 and the X3 luxury Sports Utility Vehicle imports are being launched in a phased manner. The X5, which has just been homologated will be available for deliveries to customers starting December this year and the company is said to have received confirmed orders for more than 20 units. The X5 will be powered by a 3-litre diesel engine and is to be priced at about Rs 63 lakh, ex-showroom.

Speaking to newspersons here during a driving event organised by the company, Mr Peter Kronschnabl, President of BMW India, said that the company is upbeat about its prospects in India. The company had set itself a target to sell about 1,000 cars in the 10 months of operations this year and the target has been overtaken in only eight months, he said.

Mr Kronschnabl, also mentioned that the luxury car segment as a whole has expanded due to the increased choice available to the customer now. Of the 1,100 cars sold by BMW till date about 500 units were of the 3-Series, 400 units were the 5-Series and also included about 180 units of the 7-Series.

While there are no concrete plans to get into the used car business, BMW may also consider a soft launch of the exclusive Premium Selection brand in just the two metros of Delhi and Mumbai, Mr Kronschnabl said. We may look at it next year, but currently we are faced with a non-availability of used cars, he added.

BMW India is also planning to expand its dealership network and include four more cities including Pune, Ahmedabad, Kochi and Kolkata. These new dealerships will be in operation by next year, and will be in addition to the eight cities where BMW is already present. The company is also considering setting up smaller authorised service outlets in Tier II cities, Mr Kronschnabl said.