BMW to roll out cars, bikes

To set up multi-brand showrooms.

German car and motorcycle maker BMW may have changed its mind about setting up a plant in India, but is planning to launch its superbikes, the Mini car and Rolls Royce cars here.

The company recently spent Rs 9 crore to set up a showroom in Bangalore in collaboration with Navneet Motors, one of BMW's two authorised dealers in India.

Asked why the company was making such a major investment in a dealership, Guenther Seman, managing director of the BMW group, Middle East, told Business Standard, "We are looking at expanding this into a multi-brand showroom where we can sell BMWs, the Mini series cars and the motorcycles under the same roof."

BMW currently sells the 5 Series and the 7 Series cars and the X3 and the X5 SUVs in India. The company sold 82 cars in India in the January-August period, and aims to take that figure up to 150 by the end of the year.

The Mini Series, originally a Rover brand, acquired by BMW is hugely popular in the US and Europe as a 'must-have' urban yuppie car.

The BMW superbikes, which are priced in the $6,000-10,000 range, are considered to be in the same league as Harley Davidson power horses.

Industry sources say though the Mini Series and superbikes will be sold through the dealership, the company will import the Rolls Royce luxury cars from London for individual or corporate clients.

Under the new Automotive Research Association of India (ARAI) regulations, cars priced above $40,000 will not have to undergo the homologation process in India. So, the Rolls Royces can drive into the country without hitting this hurdle.

BMW's strategy for future launches aims to exploit the new ARAI regulations. The company is loading up its less expensive models with special kits so they can price them above $40,000 and escape the tedious homologation process.