BMW India has taken a lead of over 200 units, the average monthly sales of BMW in the country, over Mercedes Benz India in cumulative sales for the first four months of 2009.
According to industry estimate, while BMW India sold 1,232 units between January and April, Mercedes Benz sold 1,014 units, a lag of 218 units in four months, thereby putting brakes on the undisputed growth and number one position of Merc in the country over the last decade. Audi India, on the other hand, continues to be a third largest luxury car manufacturer in the country with total sales of 496 units in last four months.
However, the number is far bigger when Siam figures (Society of Indian Automobile Manufacturers), which gives wholesale numbers (vehicles sold from manufacturers to dealers) as against retail sales are taken into account. According to Siam, Mercedes was 306 units behind BMW in the first four months of 2009 at 926 units as against 1,232 units of BMW India.
?Despite economic downturn, BMW India has managed to become the number one player because of the company?s fast expansion in tier-II towns and a series of new products that were launched since January this year, including the new 7 Series, 3 Series, X5 and the diesel variant of X3,? says Peter Kronschnabel, president of BMW India, adding that the company is ahead of Merc by its average monthly sales.
While Kronschnabel refused to divulge the company?s capex plans for 2009 and 2010, he said that BMW India has already started its second phase of expansion that includes opening up of 10 new dealerships by the end of 2010, starting with Coimbatore. BMW currently has 12 dealerships in India that were set up as part of the company?s Rs 110 crore investment in India in the last three years.
Mercedes Benz, on the other hand, has earmarked an investment of Rs 150 crore for expansion of dealerships across the country and a part of it will also be used to bring a new car to the domestic market. The company, which manufactures C, E and S-Class in India at its Pune plant, currently has 12 dealerships.
According to an expert, if Merc wants to rule the luxury car segment in India, it has to continuously bring in new products to meet the aspirations of its buyers. Mercedes Benz India sold 3,600 units in 2008 while BMW sold 2,908 units last year.