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Mr Peter Kronschnabl

Our Bureau

New Delhi, May 31 The industrial slowdown and a lacklustre economic outlook have not spared even luxury car makers like BMW. After Maruti, Hyundai, Honda and Tata Motors said that the current fiscal appears to be tough for auto makers, the German premium car maker has also expressed similar sentiments, even as it is optimistic of achieving its targets for the year.

“This year will be tough. The economy is slowing down. Last month, the luxury car market grew only three per cent, something that we did not experience since a long time,” said Mr Peter Kronschnabl, President, BMW India, at an interaction with journalists.

He explained that existing customers remain at the same level, but the potential customers who would have otherwise upgraded to such cars, are failing to do so.

In 2007, luxury car sales clocked 4,200 units, and this year in the first four months the number is 2,700.

Though a significant number have been sold in the first quarter itself, a company official said that there may not be a drop in terms of volumes, but the rate of growth is likely to be slower.

BMW, however, is positive on achieving its target of 2,000 this calendar year, with the company having already sold 1,079 units. Mr Herbert Diess, Member of the Board of Management, BMW Group, who is also responsible for the company’s current sourcing requirements globally, said that it was in talks with 40-50 component suppliers in India.

BMW has already finalised 4-5 suppliers and of the total number of suppliers that it was talking to, it expects 10 per cent to translate into actual business.

The company is already sourcing certain auto components for motorcycles and even for cars from the country, since it kicked off its purchasing office last year.

BMW is also planning to source engine and suspension parts from here.

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