The BMW study is scheduled to be completed over the next three months, after which the company would decide whether to introduce the small car in India or not. “We are pretty upbeat about the market in India and have invested around Rs 110 crore so far,” Mr Kronschnabl added. BMW is targeting the top position in India in the luxury car segment over the next three to five years and has decided to focus on the Indian market. It has no plans of exporting the BMW 3 and BMW 5 series cars manufactured at its Chennai plant. The company is also planning to increase its dealerships to 12 by 2009, having opened a ninth dealer outlet in Pune in partnership with the Pune-based auto retailer Bavaria Motors. “There is a good potential for luxury cars in India. While the total car market in India was growing at 16%, luxury car market is growing at more than 50%. There are close to 3,500 luxury cars in India now and 2008 will add almost 4,500 luxury cars in India. We aim to achieve the top position in this booming market,” said Mr Kronschnabl. BMW India will also focus on increasing India’s share in sourcing components for its global branches. “We have set up an international purchasing office at our headquarters in Gurgaon,” Mr Kronschnabl added. The existing team would be expanded to 10 members. The purchasing office will explore opportunities for sourcing components from India. Although the company hasn’t finalised any plans for sourcing, it would focus on procurement of production components as well as IT and engineering services, Mr Kronschnabl added.
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