BMW drives into smaller cities to push sales

German luxury carmaker BMW is stepping up its network expansion in India, specially in Tier II cities like Coimbatore, Jaipur and Lucknow, in its bid to claim the top spot in the luxury car market by 2010.

The company, which currently has 12 dealers in 10 cities, will be adding 10 more dealers in 10 Tier II cities by the end of 2010.

"In the first quarter of the year we have delivered 992 cars, which makes us the number one player in the luxury segment. We don't know if we will remain the number one by the end of the year but the intention is to be there. We are on track to stay number one by the end of the year," BMW India President Peter Kronschnabl told PTI.

In the luxury segment, BMW competes with compatriots Mercedes Benz and Audi. As per the data of the Society of Indian Automobile Manufacturers (SIAM), last fiscal BMW had sold 2,742 units, while Mercedes Benz sold 3,172 units.

Kronschnabl, however, declined to forecast the company's sales target for the year stating a clear picture would emerge only after the second quarter.

BMW has already launched four new models this year and another three would follow, which include petrol and diesel variants of its top end sedan 7-series.

On the dealership expansion, he said the company expects each dealer from Tier II cities to contribute about 30-40 cars per year.