German car maker BMW India hopes to sell 1, 350 cars in India by the end of December, well over its initial target of 1,000 cars that the car maker was looking to sell this year. The car maker, which started production in India at a new plant in Chennai in March, has already has sold 1,200 cars this year. BMW India officials says a briskly growing luxury car market in India would help the company hit the sales target.
Steady growth: BMW India president Peter Kronschnabl.
On Wednesday, BMW opened its second showroom in Pune and already has snapped up bookings for 20 vehicles. The brisk business is indicative of the appetite that Indians are developing for luxury cars.
“In the medium (3-5 years), we are confident we will be the No. 1 player in the market in this segment,” BMW India president Peter Kronschnabl said. “The market has not grown ahead of our arrival mainly because there was no competition and customers want the luxury of choice when they spend on a premium product.” Kronschnabl was referring to car manufacturer Daimler India, which has a 10-year lead on manufacturing luxury cars in the country from its Pune plant.
Daimler sold 1,681 cars in India until August this year—a growth of more than 22% from last year. Daimler is in the process of setting up a new plant in India that is pegged to have an annual production capacity of 5,000 cars. The Pune plant manufactures 4,000 units of Mercedes-Benz cars, but managing director and chief executive officer Wilfried Aulbur has said that rising incomes among Indians is now fuelling the market for luxury cars.