Reference Auto

So, BMW is finally venturing into the affordable car category in India by announcing that the BMW Mini range of vehicles would be available in the country as completely built-up units (CBUs) but will it create tremors in the luxury car market?

The Mini range of BMW cars that will come into India include the Mini Hatch, Mini Convertible and Mini Countryman. These will come only in petrol variants with six-speed automatic transmission.

The Mini cars that will roll out in India comprise five models with Mini Cooper being the cheapest. It will be priced at Rs 25.50 lakh. The Mini Cooper S Countryman High will be its high-end model and come for Rs 35.90 lakh.

BMW Group president Andreas Schaaf said, “By rolling out the new Mini a decade ago, we gave the world its first premium small car brand. Since then, we have sold over two million Minis and transformed the Mini brand from a single-model range to a family of six cars.”

He added, “Three of them — the Mini Hatch, Mini Convertible and Mini Countryman — will now be driven into India. Our main focus this year will be to concentrate on successfully establishing the Mini brand in India.”

Until now, the luxury car maker invested Rs 180 crore and has a production unit in Chennai and a parts warehouse in Mumbai. It has also strengthened its dealer network across the Metros.

The Chennai plant, which has a capacity to roll out 11,000 cars annually, makes the BMW 3 series, the BMW 5 series and the BMW X1 in petrol and diesel variants. The BMW X3 comes in diesel variants only from the factory.

BMW sales in India surged 45 per cent in 2011 to 9,371 cars, and in the January-March 2012 quarter, sales were at 2,369 cars. With the Mini launch, sales prospects look promising and could touch the 15,000-mark.

The BMW Group comprises three brands — BMW, Rolls Royce and Mini — and rivets on the premium sector of the automobile market globally as well as India.

Currently, BMW has 25 outlets in the country, but by the end of 2012, it plans to ramp up its dealer network to 40 across Metro cities.

The Mini has so far registered 100 bookings already and delivery of the cars would start from May, dealer Infinity Cars managing director Pooja Choudury said. The company plans to deliver 25-30 cars every month.

The Mini has been a highly-popular brand worldwide, and with its archaic looks, it could find niche customers in the luxury segment.

In fact, many luxury car buyers have a fad for cars with an old-fashioned look. And, being affordable (around Rs 30 lakh) is an added bonus for BMW’s Mini.

But Mercedes is gearing up to vie with BMW and is set to bring in its compact car to India soon. So, many luxury car buyers could flock to buy the BMW Mini range and create tremors in the luxury car market, making an attempt to dent Mercedes market.