Tuesday, August 07, 2012
By Pawan Rana
BMW India to witness slowest growth in 2012
BMW the number one luxury car maker in the Indian car market has announced that 2012 will witness sluggish growth and probably the slowest for the German luxury car maker. BMW made its foray in the domestic market back in 2007 and since then it has been performing well, however this year things seem to go a little hay wired. This could be a result of increasing competition and sharp depreciation in rupee that has resulted in low demand. President of BMW India, Andreas Schaff mentioned that new purchases have become very less in number and day by day it is becoming difficult to convert inquires into sales.
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He further added that the company is not expecting the growth figure to reach double digit, it is likely to be a single digit number. BMW India is anticipating the growth figure to be not mare than 5 per cent. If the market conditions improve the growth figure could reach 10 per cent. In the first quarter of 2012, the sales volume has dropped 1 per cent. BMW’s German counterpart Audi is moving with a fast pace and is doing extremely well, especially after the launch of its new compact, Audi Q3 SUV Audi has been able to see a sharp jump in its monthly sales. Since January 2012 to June 2012, Audi has seen a growth of 43 per cent which is a huge number. On the other hand Tata owned Jaguar Land Rover is also gaining popularity at a fast pace.
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Mr. Schaff did agree that the company is getting tough competition from its rivals but the company would be able to sustain the competition. The demand of the current time is introduction of new products in the domestic market to stay ahead in the competition. BMW recently launched the all new BMW 3 Series luxury saloon in India, it has been one of the most prominent launches in the luxury car segment.
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BMW is now eyeing a new retail expansion strategy in India. The company will also set up transient retail outlets in small towns like Karnal, Agra, Dehradun, Patna and Bhopal. BMW will put on show its product portfolio along with its financial arm and motorcycles. These structures will be present at one location for two to three weeks. Customers would also be able to take test drives and can also get the product demos. Special events will also be conducted around the BMW brand.
