In the ongoing auto slowdown, the luxury car segment has also seen a double digit contraction and the sales performance after the festive season can provide the correct indication of any recovery, said Rudratej Singh, president and CEO, BMW Group India.
He said it would take about four to six quarters before normalcy is restored.
“The India growth story is very much intact. We are going through what I call the double jeopardy of cyclical slowdown and [the impact of] the structural reforms.” Mr. Singh said.
“It is not surprising that consumer sentiment is at an all-time low. But I am extremely confident that we will start seeing reversal of fortune commercially in the next four to six quarters. The current sentiment, though muted, will give us some indication. The sentiment of the next three months will be a good barometer for the next 15 months,” he said.
He said though the luxury segment had plunged at a very fast pace, BMW had reported growth due to its new product launches, marketing and brand strategy.
‘Gaining segment share’
“I am glad to announce that we, in a shrinking segment, gained our segment share which has improved every quarter,” he said.
He said structural issues such as high taxation to the tune of 45-55% on luxury cars have posed challenges to the growth of the segment. Mr. Singh said all luxury car manufacturers should collectively work to grow the market, which is now only 1.3-1.5% of the broader passenger car market.
