The Hindu Business Line : Flagging in BMW's winning Series

Going in for a new luxury sedan? Hold on. BMW's 3 Series and 5 Series sedans are to hit Indian roads next year. Cars that are expected to redefine the performance and luxury standards of sedans in the country.

BMW 3 SERIES: Mr Adrian van Hooydonk, Director Design, BMW Cars, with a 3 Series sedan. — S. Muralidhar

After years of waiting, and in some cases desperately buying old models that were originally imported by licensed buyers and diplomats, luxury car buyers will at last have the option of a BMW in India.

The much-awaited German luxury car brand will finally make a full-fledged manufacturing foray into the market here.

Early next year, the first BMW 3 Series manufactured in India will roll out of its plant near Chennai, offering buyers here a taste of precision manufactured German luxury.

The big daddies of luxury, performance sports cars are already here, as are super luxury sedan brands such as the Rolls Royce and Bentley.

But the choice for buyers in the luxury sedan segment has been limited to Mercedes Benz's offerings.

BMW's confidence in the Indian market, reflected by its plans to assemble and, to some extent, locally source components, should inspire more of its ilk to explore the potential here.

The 3 Series

By February 2007, the 3 Series will be available for entry-level super luxury car customers. Two trim options each will be offered for the petrol and diesel engine versions. Deliveries are expected to begin by March.

Though the engine options and the price positioning of the 3 Series cars have not been announced, they are expected to be adequately laden and priced to enable them set new benchmarks in the segment. This could mean that the cars will be priced in the Rs 20-32 lakh range.

The 3 Series has a number of variants, which include the sedan, coupe, convertible and Touring (estate). However, for the Indian market, the 3 Series sedan will be the one that will make it. The BMW 3 Series has been the German brand's long-standing, entry-level sedan that has been extremely popular in many markets around the world.

This line of sporty sedans has been in continuous production by BMW for the past over 30 years. It has also been a series which does not lack any of the technological breakthroughs that BMW endows its bigger sedan with. This, of course, means that almost all the bells and whistles that the bigger 5 and 7 series feature may well be part of the package that the 3 Series is also offered with.

The 5 Series

The new 5 Series will follow the 3 Series into India and may be available in the market by June 2007. Indicating the seriousness with which BMW is entering the Indian market, company officials have confirmed that the model to be introduced here will be the new face-lifted 5 Series model with a new options package, which is yet to be launched globally.

BMW 5 SERIES: Stylish, professional family sedan.

The 5 Series sedan is the company's professional sedan and mainstay in most markets of the world. Once the India operations stabilise after its introduction in mid-2007, BMW expects the 5 Series to account for almost half its sales volumes here.

The 5 Series will be the benchmark of luxury for the family sedan category. While the 7 Series sedan is BMW's top of the line and competes with the likes of the Merdeces Benz S class and the Audi A8, the 5 Series will be positioned opposite the Mercedes E class in the Indian market. Expect pricing to be about Rs 40-lakh plus.

The 5 Series features BMW's best technologies, such as active steering, dynamic drive, adaptive headlights, head-up display, dynamic stability control and iDrive. However, some of these features may not make it to India owing to current regulations.

Hi-tech assembly plant

BMW will first assemble the 3 Series in its India plant. The company has already set up its marketing office in Delhi, and the Chennai plant is coming up. Mumbai will be the port of entry for BMW's after-sales parts, while the completely knocked down kits (CKD) will come in from the Chennai port.

As part of its localisation strategy, the company is targeting 10 per cent domestic content in terms of value. Locally sourced parts for the two cars are expected to be the car's seats, seat leather covers and electronic components for the seats.

The BMW plant in Chennai will be spread over 22 acres and house departments that will handle logistics and administration, in addition to the assembly line and a small test track.

The Chennai plant will have an annual capacity of 1,700 units working on a one-shift basis. The company is targeting sales of 1,000 units in the first year (2007) of operations. After the launch of the 5 Series in June next year, sales to match the full capacity of the plant is being targeted for the next full year of operations.

As part of its plans for the Indian market, the company is planning to expand its dealer network. In the first phase, the company is planning to have at least one dealer in the top ten metros of the country. New dealerships are expected in Delhi and Chandigarh and the company has also signed MoUs for new dealerships in Chennai and Pune, which are expected to open by end-2007.

So, if you are in the market for a new luxury sedan, our reco will be wait for the BMWs to arrive. They will redefine the market for performance sedans and bring new meaning to the term `bold, yet understated elegance in design'.

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