BMW India is preparing for a new growth phase in India with a revamped strategy.
As part of this, it is currently evaluating right segments and products. The objective is to achieve sustainable and profitable growth in the coming years.
The proposed move indicated that the German luxury brand is gearing up to move away from its earlier plan of chasing volumes.
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“Of course, we were focusing on numbers. But that was mainly to build the market and achieve market share. Also, the economic and market conditions were favourable in the country then unlike the current scenario,” said Robert Frittrang, Managing Director, Plant Chennai, BMW India Pvt Ltd.
The luxury brand was pushed to the third place in total volumes in 2013 in India by its German rivals Audi and Mercedes. It held number 1 spot in 2012.
“We are currently working on where we want to focus, and which cars and segments in future. Our sales and marketing team in New Delhi will revise the strategy, and the new plan will be in place by next month,” he said.
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BMW also plans to produce two more models, including high-end SUV (sporty utility vehicle) X5 and another car, at its plant near here in an attempt to be price-competitive. BMW X5 will be positioned in the Mercedes M-Class segment.
The Mahindra World City manufacturing complex, which has a capacity to produce 11,000 units a year, will start making two more models from this year, taking the total number of locally-produced models to nine. About 95 per cent of company’s cars sold in India were produced out of this plant.
To a query on the status of the tax row, Mr.Frittrang said the company was working closely with the authorities in Chennai and Delhi, and hoped to arrive at a conclusion this year. “ It is not in anyway harming our business here,” he added.