BMW, the European auto giant, is planning to outsale Daimler Chrysler in India within next six years. India because of its prosperous economy, has become an attractive market for foreign automobile producers. Daimler Chrysler has been doing business in India for ten years. At present, it is selling 2000 units per year. BMW came to India last year and sold 200 cars all of which are imported. Now, BMW's target is to reach 3500 cars per year by 2012 and 10,000 within 2015. Peter Kronschnable, President, BMW said that the Indian automotive market is very competitive and his company is targeting to acquire 30% of the Indian market by 2015. At present, the BMW plant situated in Dingolfing, Bavaria, is supplying cars for the Indian market but in future the company will localize its products.
Along with selling cars BMW is also planning to start its financial service in partnership with an Indian bank. Kronschnable said that within next twelve months they are going to devise some financial services and start implementing them. For now, their main goal is to compete with Daimler Chrysler.
Rise in income and easy installments have motivated people to buy cars. A large number of Indians prefer small cars. As their income levels are going up, they are shifting toward bigger and more luxurious cars. This is why foreign automobile producers are now fighting for their shares in the Indian market. Personally, I believe that this is a good thing for the Indian car market. As more producers will come, people will have more choices and in a market of cut throat competition each will try to outsale the other by offering cars at a more reasonable price.
I'd bet BMW, although new, might win this competition. Of course, I'm not a market analyst and it's only my personal opinion.
Posted by: nepspeed82 | September 19, 2006 12:23 PM | Permalink to Comment