Wednesday, June 08, 2011
By Pranjal Gera
BMW looking for improved dealership network
German autocar giant BMW is set to expand its retail showrooms in India by threefold till 2015, following to the BMW India’s market expansion strategies. Changing its focus from mainly lucrative markets of Mumbai and Delhi; BMW India wants to cut down its dependency from these major markets. Apart from having 22 dealers in India presently there are future plans to expand in other cities too.
The premium and ultimate luxury car manufacturer BMW, also being India’s best luxury car seller was given the top spot the previous year in terms of sales. The increased plans are of around 60 dealers alone in India till 2015.
Andreas Schaaf, President of BMW India said that the current market share of 60 percent from Delhi and Mumbai would be reduced to 40 percent only all due to the sales plan for other cities of India. The plan is for future maturation of these dealerships reducing the fear of low sales from these 60 dealerships’ in the first few years.
10 percent of the total luxury car sales in India could be the generated from Chennai by 2015 as BMW has a profitable market there added further by Schaaf.
The cut throat competitive environment last year was all with Mercedes-Benz. But the current market sale charts are better than last year, Andreas Schaaf emphasized further.
Approximately 10,000 units of the luxurious car are analysed to be sold out by the end of this year. The Chennai manufacturing plant is all set to back this target loaded with full gears and latest technology which is housed at Mahindra World City considering a single shift. To make future expansion plans BMW India has also purchased industrial land for the expansion strategies.
Adding to his views Schaaf said the luxury car market is growing rapidly and by 2020 this could reach to a soaring level of 1,50,000 car units.