BMW, the country's largest premium car maker, on November 8, 2012 said that the company will launch its premium compact car 1 series by the end of 2013. The company aims to overcome the dip in its sales and counter the competition it currently faces from Audi and Mercedes Benz.
Currently, the cheapest car from the stables of BMW is its SUV X1 with a price tag of Rs. 24.5 lacs. However, BMW 1 series, when launched, is likely to be the cheapest BMW car in India and would compete with the likes of Mercedes' premium hatchback A class.
Philipp von Sahr, president, BMW Group India said, "We are interested in the premium compact car space and will launch the 1 series by the end of 2013. It will be assembled at our factory in Chennai." He further added, "We expect it to be one of our best selling cars here. It will command a premium price positioning but we will take a final call on it only during summer."
BMW, which has been the largest selling premium car manufacturer in the country, is all set to be the top position holder this year too. However, its sales of luxury cars amid rising fuel prices and high interest rates, combined with slow economic growth have dipped in 2012.
BMW, however, has no plans to cut prices in order to increase its sales. "Being number 1 in sales is important but its not the only thing,” Von Sahr said. He further added, "We will look for more volumes but not by cutting prices. A premium manufacturer cannot go for discounts. We may lose out on volumes here and there but that is not a problem."
BMW currently in India sells its sedans 3 Series, 5 Series, 6 Series and 7 Series apart from SUV X1, X3, X5, crossover X6. The other vehicles sold by BMW in the country include M Series, Z4 Roadster and Gran Tourismo.
