The Hindu Business Line : BMW plans launch of Mini in Indian market in 2009

Looking ahead
The company has invested € 20 million (Rs 116 crore) and would initially employ 200 workers.
It will make seven models of the 3 and 5 Series at the Chennai facility.

IN TOP GEAR: Dr Norbert Reithofer, Chairman, Executive Board of BMW AG (right), and Mr Peter Kronschnabl, President, BMW India, at the inauguration of the car assembling plant at Mahindra World City near Chennai on Thursday. The company plans launch of Mini in the Indian market. — Bijoy Ghosh

Chennai March 29 BMW, the German car manufacturer, which inaugurated its assembling plant near Chennaion Thursday, is considering introducing the Mini in the Indian market.

At a press conference here today, Dr Norbert Reithofer, Chairman, BMW AG, said BMW's entry into India is an important step in securing its growth in Asia. With the dynamic growth in the continent, it is important for the company to establish Asia as a mainstay of its business. The company will seize all opportunities for its stable of brands - the BMW, Mini and the Rolls Royce.

According to Mr Peter Kronschnabl, President, BMW India Pvt Ltd, the company is doing a market analysis for the launch of the BMW Mini in India. If it is found viable, the company may launch the car in 2009.

Dr Reithofer said BMW sold 1,36,000 cars in Asia last year and hopes to increase this retail volume to 1,50,000 this year.

India is one of the growth markets, where experts predict that the car market would nearly double to 2.2 million in 2015 from 1.2 million now. The premium segment is growing twice as fast as the mass-market segments. BMW, with its premium cars, wants a share of this market and contribute to the economy.

The company has invested € 20 million (Rs 116 crore) and would initially employ 200 workers. Downstream employment at its dealers and service network would be about 600. BMW India has its headquarters in Gurgaon, and has a central warehousing facility for spares in Mumbai.

Chennai unit

BMW will make seven models of the 3 and 5 Series at the Chennai facility. The price tag will range between Rs 26.7 lakh and Rs 29 lakh ex-showroom for the 3 Series and Rs 37 lakh-45 lakh for the 5 Series.

Over 90 per cent of the sales in India would be from the Chennai facility, which has a capacity to manufacture 1,700 cars a year on a single shift basis. The rest of the sales would be of imported BMW cars, mainly the 7 Series and the SUVs.

The models to be manufactured here are the 3 Series of 320i, 325i, 320 diesel, and the 5 Series - 520i, 523, and the 525 petrol and diesel.

The BMW plant has come up at the Mahindra World City industrial park, 40 km south of Chennai. It has a production area of 30,000 sq m in a facility spread over 89,000 sq m.

The seats in the 3 series and the door panels in the 5 series are procured locally and the rest of the kit is imported from Europe, he said.

The company has set up eight dealerships including in Delhi, Mumbai, Hyderabad and Bangalore, and will have nine dealers by the year-end. It hopes to include Kochi, Ahmedabad, Kolkata in its network and by 2009, will have a presence in at least 10 cities, he said.

BMW AG

According to a company press release, 2006 was the most successful year for the 90-year-old company. The pre-tax earnings were 4,124 million (Rs 24,000 crore) with deliveries of BMW, Mini and the Rolls Royce touching 13,73,970 and motorcycle sales crossing 1,00,000.

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