The Hindu Business Line : BMW Mini to drive into India in 2009

In an informal chat on Monday with a group of Indian journalists here on a visit sponsored by BMW, Dr Segler said a market study conducted in India for the introduction of Mini came up with positive findings and hence launch of the car is imminent.

The cost for homologation for each model, which is €200,000, “is on the higher side”. BMW India has been negotiating to reduce the cost. Nevertheless, the car will be launched in 2009, he said.

Later, the Board Member of BMW AG (Production), Mr Frank-Peter Arndt, said that the Group was considering assembling of X3 in India once it reached the critical volume of 500 units per year. Another official indicated that assembling of BMW 7 series might be considered as it was picking up volumes. In 2007, BMW India sold 251 units of ‘7 series’.

Announcing 2007 results, the Chairman of Board of Management of BMW AG, Dr Norbert Reithofer, said the Group stayed on its course despite unfavourable conditions like negative effects of foreign exchange rates and increasing raw material prices. The group revenues increased by 14.3 per cent to €56 billion.

Sells over 1.5 m cars

Dr Reithofer said the group doubled its sales between 2000 and 2007, and for the first time in its history it sold over 1.5 million cars (in 2007), growing by 9.2 per cent against the previous year. Motorcycles sales increased by 2.4 per cent, while its financial services arm grew by 15.8 per cent. For the first time it surpassed the €3-billion mark in net profit, he said.

He said the company has been facing challenges in terms of stricter emission standards in different parts of the works and exchange rates. “When stricter emission laws take effect, we will be able to offer American customers, environmental-friendly premium cars. This will enhance our strong position even further,” he said.

Dr Reithofer, who said the company was cutting as many as 600 jobs in overseas operations and 2,500 in Germany, was likely to add more manpower in India. “In 2007, 200 jobs were created in India and if the market continues to grow as it has grown for us last year, we have to think of developing it further,” he added.

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