BMW’s small car to enter India by ’09

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Mumbai, Sep 6: BMW India, a 100% subsidiary of the BMW Group, is planning to launch its cult premium small car MINI in India by 2009, to cash in on the growing demand for luxury brands in India. BMW had recently re-launched the Mini Cooper globally a couple of weeks ago and it is this model that may be brought in India. The company is aggressively building operations in India and has revised its plans to sell 1,200 cars from the earlier target of 1,000 units.

Peter Kronschnabl, president, BMW India Pvt Ltd told FE, “We are currently evaluating about bringing the brand MINI in India. If we bring it here, it will be launched in 2009. MINI is an expensive premium small car and may cost somewhere around Rs 15 lakh.”

Originally developed by the Rover Group, the Mini was manufactured by British Motor Corporation from 1959 to the year 2000. When BMW divested itself from Rover in 2000, it retained the Mini project with itself. Since then, BMW is manufacturing this car through its subsidiary MINI in England under the name of 'BMW MINI' or the ‘NEW MINI’. On April 3 this year, the one millionth MINI rolled out of the company's Oxford plant. Like other cars, BMW is expected to import the CKDs (completely knocked down units) of MINI into India as well.

It is currently evaluating Indian components for global sourcing and has already set up an international purchasing office here.

In India, it currently localises (seat and seat cover and electronics components) up to 10% of the total value of the car and is also looking to add more components in future.

“The luxury car market is growing at a fast pace. Last year, 3,000 cars were sold in the segment and by 2012 it is expected to be 10,000 units. By then, we want to be the leader in the segment,” added Kronschnabl.

BMW currently imports CKDs of its 3 Series and 5 Series cars in India and assembles it at its plant in Chennai, whereas the 7 series car and X5 (an SUV) are being imported as CBUs (completely built units) from Germany and the US respectively. It currently has eight dealers, which will be increased to 12, by January 2008.