BMW to enter small car segment within 2 years
With an idea of staying ahead of rivals Mercedes Benz and Audi, the German carmaker BMW is planning to bring in BMW 1Series hatchback and the BMW Mini compact cars within next two years. BMW India President, Andreas Schaaf earlier said that the Indian automobile market is progressing with high pace and company is planning to drive in their compact segment cars.
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Further he said that this decision will not only assist BMW in acquiring more market share in India but will also provide consumers with new options in small car segment. It should be noted that this announcement from BMW came just after Mercedes Benz India MD & CEO Peter T Honegg announced that Mercedes Benz is going to bring compact segment cars i.e. Mercedes A Class and Mercedes B Class cars in India by 2013.
As per reports, BMW is currently holding the top position in the luxury car market with record sale of 70% in last FY with Mercedes and Audi holding on to the second and third position. Schaaf said that as the local demand will increase, BMW will start bringing the products from their global lineup which includes latest technology and new concepts. Studies suggest that Indian consumers now prefer new concepts and niche products, which in turn encourages German luxury carmaker to analyze the idea of driving in its compact cars like 1Series hatchback and the famous Mini range. It is expected that the small segment cars will bear the price tag of Rs. 22-27 lakhs.
As per sales report of FY 2009-11, German automobile giant Volkswagen got 500 units of its Rs. 23 lakhs Beetle sold, followed by Fiat which has sold 100 plus Cinquecentos with a price tag of Rs. 16 lakhs. And these expensive advancements are encouraging Mercedes and BMW to plan their entrance in small car segment.
Furthermore, BMW also stated that the company is not going to increase the price of models manufactured in India i.e. BMW 3 Series, BMW 5 Series and BMW SUV X1.
