BMW India to increase localization from 20-50%; plans new launches in 2015
BMW India didn’t have as good a year as its German counterparts did. BMW India managed to sell 8,000 units, while Mercedes managed a whooping 10,000 units. Mercedes can attribute its huge sales to the new refreshed models it launched this year, which happened to be loved by consumers and automobile enthusiasts alike!
BMW plans to strategize and make key changes to up its sale in India. The company currently has a manufacturing plant in Chennai which makes the 1-series, 3-series, 5-series, 7-series, X1, X3 and the X5. Till last year the company only localized 20% of it’s products while 80% were still got in from abroad. This led to higher costs of the car, because tax and duties in India is extremely high as compared to other countries. BMW has spent the last whole year searching for suppliers who will arrange for parts, which match the international standards of the automotive major. This will help in pricing the cars more competitively, and eventually help increase sales. The only problem is that the cost-cut would not be effective immediately and will take a time to implement.
BMW plans to launch as much as 15 new variants this year to increase their portfolio. This would provide much more choice for the consumers. The new cars would include the i8, the new M6, M6 grand coupe, the X5M and the X6M. This would excite BMW fans, as these cars would be making their way to Indian shores for the first time. It’s going to be a good year for BMW, and BMW enthusiasts waiting to upgrade to a new model. How the cost effectiveness works out for the company? Only time will tell.