News: BMW to begin production in India early next year
(PTI 30/08/2006) New Delhi - German luxury car maker BMW on Wednesday said it would begin production of cars in India early next year and expected sell about around 1,000 units in the first year of operation where it would produce '3' and '5' series models.
"The first car will delivered to our dealers by February- March next year and we hope to have 8-9 dealerships across major metropolitans by 2009," BMW India President Peter Kronschnable said at Gurgaon, where the company will be having the headquarter of its India subsidiary.
Kronschnable the company is investing 20 million Euros (approx Rs 110 crore) for setting up its plant at Chennai, which would have an initial production capacity of 1,700 units per annum on a one-shift basis.
He said while deliveries of the 3 series cars would start by February-March, the locally produced 5 series models would be available by May-June.
"These will be available in both petrol and diesel versions and will carry a localisation of around 10 per cent to begin with," he added.
Peter Kronschnable said the company, which will be employing 150 people, at its factory and another 50 at its headquarters, would come up with dealerships in cities like Delhi, Mumbai, Hyderabad, Bangalore and Chandigarh.
He said, BMW saw India as a strategic market with high potential.
"In 2007 we expect total sales in the luxury cars segment, costing over Rs 20 lakhs, to be at 5,000 units which we hope will double by 2010.
He said, going by the initial testing BMW had carried in India the locally produced will have adaptations specially designed for the markets including higher ground clearance, protection plate under the engine and additional air filter.
Asked whether the company has plans to introduce 7 series models and four wheels drives, Kronschnable said the company would take decision on this only after 2009 and till then would follow the completely-built-unit (CBU) import route.
Asked whether BMW had plans to bring cars from the group company 'mini' he said a decision would be taken after 2009, "after taking into account the prevailing market conditions at that time."
BMW is also setting up financing arm through its India subsidiary, which would take care of the needs of its dealers and potential customers.
"We are in the process of signing an agreement with banks for this purpose, which is likely to be announced in the next four to six weeks," Kronschnable said.
BMW cars in India would be competing primarily with products of Mercedes Benz, which is already locally producing cars at its facility near Pune.
Asked whether the company had plans to start motorcycle production in India he said there were no immediate plans to do so as present market conditions were not viable to support such a business.
BMW has plans to tap smaller cities through dealerships after the first phase of expansion which ends in 2009.
"The first car will delivered to our dealers by February- March next year and we hope to have 8-9 dealerships across major metropolitans by 2009," BMW India President Peter Kronschnable said at Gurgaon, where the company will be having the headquarter of its India subsidiary.
Kronschnable the company is investing 20 million Euros (approx Rs 110 crore) for setting up its plant at Chennai, which would have an initial production capacity of 1,700 units per annum on a one-shift basis.
He said while deliveries of the 3 series cars would start by February-March, the locally produced 5 series models would be available by May-June.
"These will be available in both petrol and diesel versions and will carry a localisation of around 10 per cent to begin with," he added.
Peter Kronschnable said the company, which will be employing 150 people, at its factory and another 50 at its headquarters, would come up with dealerships in cities like Delhi, Mumbai, Hyderabad, Bangalore and Chandigarh.
He said, BMW saw India as a strategic market with high potential.
"In 2007 we expect total sales in the luxury cars segment, costing over Rs 20 lakhs, to be at 5,000 units which we hope will double by 2010.
He said, going by the initial testing BMW had carried in India the locally produced will have adaptations specially designed for the markets including higher ground clearance, protection plate under the engine and additional air filter.
Asked whether the company has plans to introduce 7 series models and four wheels drives, Kronschnable said the company would take decision on this only after 2009 and till then would follow the completely-built-unit (CBU) import route.
Asked whether BMW had plans to bring cars from the group company 'mini' he said a decision would be taken after 2009, "after taking into account the prevailing market conditions at that time."
BMW is also setting up financing arm through its India subsidiary, which would take care of the needs of its dealers and potential customers.
"We are in the process of signing an agreement with banks for this purpose, which is likely to be announced in the next four to six weeks," Kronschnable said.
BMW cars in India would be competing primarily with products of Mercedes Benz, which is already locally producing cars at its facility near Pune.
Asked whether the company had plans to start motorcycle production in India he said there were no immediate plans to do so as present market conditions were not viable to support such a business.
BMW has plans to tap smaller cities through dealerships after the first phase of expansion which ends in 2009.
posted by InCar Group Press Room at 15:29
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