While driving, he hates wearing a jacket. That?s one of the few things that Peter Kronschnabl, the 43-year-old president of BMW India, gave away when we went for a drive in his spanking new X6.

The BMW office in Cyber City, Gurgaon, was bristling with energy when I landed there on a warm Friday evening. The Munich-based company had just trumped rival Mercedes-Benz in India and the confidence was palpable all along the minimalist corridors. ?This workspace looks German,? I suggested coyly to Peter who greeted me, dressed smartly in a charcoal-grey suit.

?It?s just modern,? he countered and quickly took me around with, well?umm?should I say, German precision. In a few minutes we found ourselves in the driveway of the office complex and an epic white X6 came to a stop in front of us, blocking an entire row of angry motorists. Peter quickly climbed into the driver?s seat and said with a laconic smirk: ?I don?t understand why my driver parks the vehicle in the middle of the road. He hates me whenever I take over the wheel.?

Peter?s driver is not alone. Ask the people who matter at Mercedes-Benz India. As we drove along with the mellow sun dying on us, Peter launched into an explanation on how BMW managed to do what it did ? beat Mercedes-Benz at its own game in a market where the latter has been present for nearly twice as long. ?We take India very seriously. It has always been a long-term strategic market for us,? the BMW India chief stated.

Sales data from the companies for 2009 had BMW selling 3,619 units compared to Mercedes-Benz India?s 3,247 units. Industry experts feel it?s more of a mind game than anything else since the difference in the number of units sold is not large. Some of them even pointed out that Mercedes-Benz slipped because it was replacing a couple of models, including the E-Class, its bestseller. I mentioned it to Peter. But he looked unfazed and stared out of the window at the traffic whizzing by.

?No one can ignore automotive lifecycles. I am a staunch believer in careful product planning,? he said and suddenly stepped on the gas. Without warning the X6 lunged forward leaving the 5-series tailing us, far behind. ?If you have the power it?s easy to lose them,? he quipped and turned around to face me. We waited for his drivers to catch up.

In 2009, despite the slowdown, BMW launched a range of exciting products such as the X6 sports-utility coupe, the Z4 open-top roadster, the fifth generation of its 7-series sedan and the Gran Turismo. It?s also in the process of rolling out an affordable SUV the X1 this year, which Peter mentioned would be cheaper than its entry-level sedan, the 3-series. The X1 will be a CKD (complete knock down) and will be manufactured at BMW?s Chennai plant.

Peter attributes BMW?s success in India to its focus on dealerships, customer experience and examination of new niches in the market. ?It?s not odd for us to transform one of our dealerships into a five-star restaurant one evening and invite our customers over for a six-course dinner. Our dealerships also have a first-class lounge for 7-series customers. All these go a long way in building our brand,? he said and went on to add that when BMW first came into the country it didn?t find its competitor?s act too flattering. ?So we decided to benchmark BMW against BMW.?

Rapid expansion is also on Peter?s mind. ?I am really interested in tier-two cities. In the next 12 months we will be opening 10 new dealerships,? he revealed. In addition, by mid-2010 the company will introduce BMW Financial Services India as a 100% subsidiary to be headquartered in Gurgaon. BMW Financial Services India is presently seeking a licence to operate as a Non-Banking Finance Company (NBFC) in India to offer solutions for retail financing for BMW customers and multi-make customers, financing for fleet owners and commercial financing for BMW Dealerships and multi make dealerships. ?This will help us to offer creative financing solutions,? said Peter.

And this year, the company is also planning to introduce a pre-owned car business with the launch of BMW Premium Selection in India along with a leasing business that will help it to lease out cars to individual customers not preferring outright purchase. ?We have over achieved our target this year but we can?t rest on our laurels,? the BMW president said as we neared his residence in the capital?s posh Vasant Vihar area.

We discussed traffic jams, Indian road conditions and sports cars while waiting for a gap in one particular choc-a-bloc situation. I learnt that Peter?s favourite car is the BMW 507 TS, a rare roadster which almost drove the company to the edge of bankruptcy. But I felt that was the last thing on his mind as he turned towards me and emphasised: ?I just love driving.? Sure Peter, it?s evident!