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BMW to see slowest growth in 2012
Posted on 07 Aug 20123,760 Views Comments
Due to the slowdown of the Indian automobile market BMW expects a growth in the range of 5 per cent in 2012
BMW, the leader in the luxury car market, has said that 2012 will see the "slowest growth" for the company since its India debut in 2007 as competitive pressures and weakening economy dampen demand. Andreas Schaff, president of BMW India, said new purchases are hard to come by as it is getting difficult to convert customer inquiries into sales.
"We do not expect growth to be beyond single digit this year, somewhere in the range of 5 per cent," Schaff, who is set to move out of the Indian market later this year, told TOI. "If the market is good, the maximum we can grow is 10 per cent." BMW's volumes have slipped 1 per cent in the first half of 2012. The company is facing tough times as its rivals are moving aggressively. Audi is breathing down BMW's neck and its sales have grown 43 per cent in the January-June 2012. Tata owned British luxury brand Jaguar Land Rover (JLR) is also expanding.
Schaff admits that competitive pressures exist, but adds that BMW is confident of maintaining its edge. "The competition in the market is fierce. Also, people want to experience different products, a fact we do recognise." The company is confident that new launches and other marketing innovations will add momentum to its numbers. The most notable of the launches has been the new-generation 3-Series sedan that hit the market earlier this month.
BMW is also working on a new retail expansion strategy in India. Under a 'mobile showroom' concept, the company will set-up temporary retail outlets in smaller cities like Karnal, Agra, Dehradun, Patna and Bhopal. "These will be temporary structures where we will display our product portfolio as well as have the financial services arm and motorcycles. The structures will be at a location for two to three weeks and apart from product demos and test drives, we will also have special customer events around the BMW brand," Schaff said.
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