It was just over a year ago that India gave BMW the luxury car sales crown. But the German carmaker’s local sales have sputtered, forcing it to the third spot behind Audi and Mercedes-Benz with a 22% drop in sales from a year ago. BMW sold 7,327 vehicles in 2013, the company told ET, revealing a yawning gap with Audi and Mercedes-Benz, the two other German carmakers that notched 11% and 32% growth in sales, respectively, in a market that grew 6%. Last year, Mercedes sold 9,003 units while market leader Audi sold a thousand more.
TherumbleandtumbleinIndia’sluxury car market has also seen the emergenceof Tata-ownedBritishbrandJLR, which sold 2,913 sedans and SUVs last year, up 22% from a year ago.
The slip in sales for BMW came even as the it entered the sub-. 25-lakh local market to gain volumes. In September, BMW had launched its 1Series at an all-India ex-showroom price of . 20.9 lakh. BMW says it is trying to focus on sustainable growth. “We want to be the leading luxury car company with delighted customers, strong partners and most important, sustainable leadership,” said Philipp Von Sahr, president of BMW Group India. He did not comment on the company’s 2013 sales. Some analysts attribute BMW India’s dismal performance to its inability to shift gears at the right pace and its older product portfolio.
“BMW suffered in 2013 due to the ageing X1 and a lack of interest in its otherSUVs, like X3 and the X5,” said Deepesh Rathore, director, EMMAAA, an automotive research & advisory firm specialising in emerging markets.
According to Rathore, Audi emerged the winner due to its strong SUV lineup, especially its new compact SUV — Q3, and an aggressive sales push for its high-end sports cars. “Mercedes benefited by lowering prices of key models as it moved them from fully-imported cars to going for a local assembly at its Pune plant,” Rathore said.
ThedepressionintheIndiancarmarket spilled over to the luxury segment with sales tapering off towards the end of 2013. While the car market posted a 10% decline to 18,07,000 units, the luxury segment managed to remain positive with 6%growth—lowestinthepastfiveyears. Segment leader Audi grew just 3% in the second half of 2013 from the 21% posted in the first half of the year. Similarly, BMW’s sales tapered off for the full year, registering a 22% drop.
chanchal.chauhan@timesgroup.com
TherumbleandtumbleinIndia’sluxury car market has also seen the emergenceof Tata-ownedBritishbrandJLR, which sold 2,913 sedans and SUVs last year, up 22% from a year ago.
The slip in sales for BMW came even as the it entered the sub-. 25-lakh local market to gain volumes. In September, BMW had launched its 1Series at an all-India ex-showroom price of . 20.9 lakh. BMW says it is trying to focus on sustainable growth. “We want to be the leading luxury car company with delighted customers, strong partners and most important, sustainable leadership,” said Philipp Von Sahr, president of BMW Group India. He did not comment on the company’s 2013 sales. Some analysts attribute BMW India’s dismal performance to its inability to shift gears at the right pace and its older product portfolio.
“BMW suffered in 2013 due to the ageing X1 and a lack of interest in its otherSUVs, like X3 and the X5,” said Deepesh Rathore, director, EMMAAA, an automotive research & advisory firm specialising in emerging markets.
According to Rathore, Audi emerged the winner due to its strong SUV lineup, especially its new compact SUV — Q3, and an aggressive sales push for its high-end sports cars. “Mercedes benefited by lowering prices of key models as it moved them from fully-imported cars to going for a local assembly at its Pune plant,” Rathore said.
ThedepressionintheIndiancarmarket spilled over to the luxury segment with sales tapering off towards the end of 2013. While the car market posted a 10% decline to 18,07,000 units, the luxury segment managed to remain positive with 6%growth—lowestinthepastfiveyears. Segment leader Audi grew just 3% in the second half of 2013 from the 21% posted in the first half of the year. Similarly, BMW’s sales tapered off for the full year, registering a 22% drop.
chanchal.chauhan@timesgroup.com
Source: The Economics Times
By: CHANCHAL PAL CHAUHAN
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