BMW to launch Rs 25-lakh Mini in India in 2012

German auto major BMW on Monday said it will launch the small luxury car, Mini, in India by next year at a price that is expected to be above Rs 25 lakh (Rs 2.5 million).

The company also said it will set up separate showrooms for the brand and aims to have up to 12 dealerships across the country for the Mini in the coming years.

"I am pleased to announce that the Mini will be introduced in India in 2012. Currently, the BMW team is evaluating which version to be launched in India from the entire Mini family," BMW India President Andreas Schaaf told reporters in Gurgaon.

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He said the Mini would be sold in India through import of completely built units (CBU). BMW had earlier planned to launch the Mini in India in 2009, but shelved it citing feasibility reasons.

On the expected price of the car, he said: "We have not finalised the price of the car yet, but it is a premium brand and a premium car. Of course, the entry price will be more than Rs 25 lakh."

Schaaf said exclusive Mini showrooms will be set up in India.

"As a first step, we will have two dealerships in Delhi and one in Mumbai. In total, we will have 12 dealerships across the country in the coming years. As per plans, in 2013 we will add 3-4 dealers followed by 3 more dealerships in 2014," Schaaf said.

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The Mini is an 80-year-old brand with history and heritage and is among one of the sought after small luxury cars in the world.

"We had developed a new Mini ten years ago from the scratch. India is the only country where Mini has not been introduced. So, I think, it will be as successful here as in other countries," he said.

On the overall performance of BMW in India, Schaaf said the company is the market leader since 2009 and has 40 per cent market share in the luxury segment.

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In 2010, the Indian luxury market was 15,000 units and is expected to be around 20,000 units this year.

"We have sold 7,152 cars till September this year and we have already crossed last year's total sales.

"We are well in course of our target to sell 10,000 units in this year," Schaaf said, adding that BMW's 'X' range of SUVs contributed 35 per cent to the total sales with X1 accounting for over 3,000 units.

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On network expansion, by 2012 BMW will increase the dealerships to over 40 outlets from 25 currently, he said.

India's luxury car market will grow to 150,000 units by 2020. India will be in the top 10 markets of the BMW Group, Schaaf said.

"We'll continue to be No.1 by then with 30-40 per cent market share. We aim to sell 60,000-70,000 units per year, hopefully we will be selling more than 70,000 units," he said, adding that a new 3 series car would be launched next year.

The company will also increase manpower at its Chennai facility to around 650 by the end of this year, from 600 people now. The facility can produce 11,000 units per year.

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Commenting on the market condition, Schaaf said: "We have not seen the premium segment being impacted by the slowdown. There is no impact of interest rate hikes."

So far the market has grown 60 per cent this year, but next year it may not witness same high growth, he said.

"At a conservative estimate, our assumption is it will grow by 30-40 per cent," he added.

Schaaf said BMW India is also gearing up to launch its car leasing venture for which the company has been working for the last one year.