Even the rich aren't buying much: BMW sales down

Sindhu Bhattacharya • December 20, 2014, 09:01:48 IST

BMW, which had a dream run in sales in the first half of last year, is beginning to see slower growth in the current economic gloom.

Even the rich aren't buying much: BMW sales down

New Delhi: If you thought sales of only small cars have been hit by the economic slowdown, think again. Luxury car maker BMW, whose range of cars begins at Rs 24.4 lakh and goes all the way up to Rs 1.4 crore (ex-showroom), is also affected.

BMW’s sales growth in calendar 2011 averaged about 50 percent (it was 90 percent in the first half), but may now be down to just 10-20 percent this year. BMW sold 9,371 cars last year and between January and May this year sales stood at 3,707 cars.

Andreas Schaff, President of BMW in India, says the economic deceleration is slowing down the car market and BMW is no exception. But the Beemer has still not pulled back from its plans to launch the iconic Mini in India.

Almost 50 units of this niche small car have been sold from the first Mini showroom in Mumbai during May - the first month of retail sales - and Schaff says the company has an order-book of another 100-200 cars, forcing it to close bookings for the next three months.

So is the Mini immune to market sentiment? “Mini is a niche brand and will find its customers despite the tough economic environment,” Schaff says.

At a price tag of Rs 25.5 lakh for the base version of the Mini Cooper and going up to Rs 35.9 lakh for the Mini Cooper Countryman High, the car is certainly targeting only a narrow upmarket segment. To a question on when diesel variants of the Mini will also be sold in India, Schaff did not provide a timeline. As of now, three types of Mini cars can be bought in India - Mini, Mini Convertible and Mini Countryman.

Available as completely built-up units (CBUs), the Minis are to be retailed through three separate dealerships (not those which sell other Beemers) in Delhi and Mumbai. Schaff said there were no immediate plans to import these cars in CKD (completely knocked down) kits and assemble them at BMW India’s Chennai facility. This facility has an installed capacity of 11,000 units per year on a double shift basis. It produces the BMW 3 series, 5 series and X1 in both petrol and diesel variants.