BMW, despite being leaders in the Indian luxury auto sector has recorded its slowest growth during the current year ever since it commenced operations in Indian markets in 2007. Competition, weakening economy and dip in demand are major factors that have led to these results. New purchases are hard to come by and it is difficult for company to convert inquiries into sales.
This dismal situation is likely to continue throughout the year with no hope in sight even for the upcoming festive season which usually results in increased demand in a country like India. BMW pegs their growth at just 5% while if markets prove to be better this figure could grow to a maximum of 10%.
BMW is facing strong competition from other auto majors such as Audi, whose sales have increased 43% and Jaguar Land Rover who have also reported increased sales. BMW is now banking on their recently launched 3 Series to escalate profits. The company is also working on a new retail expansion strategy while a new mobile showroom concept is being conceptualized specially to take on smaller cities like Karnal, Agra, Patna and Bhopal. BMW will be erecting temporary structures for a period of two to three days to display their products in the hope of garnering some attention and increasing sales. Last month, the new BMW 3 series was launched pan India.
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