BMW luxury small car planned for India

[ganeshbala]

BMW, is mulling over the possibility of launching its Mini in India. If it does, the small car would be the costliest small car in India at a price of Rs 20 lakhs.

The success of the Tata Nano may have precipitated BMW's move to launch a small car but BMW has said that it has no intention to take on the Nano with its small car.

BMW India is said to have completed a study on the potential new product launch. Peter Kronschnabl, president of BMW India Private Limited, said, "The team that carried out the feasibility study for the launch of Mini has submitted its report and it is being studied by our headquarters. Mini is not just a car. It is a brand. BMW has to study the feasibility of its launch here."

BMW Mini Cooper

Launching BMW's first dealer outlet in Chennai, named Kun Exclusive, Kronschnabl said Mini would cost no less than Rs 2 million ($49,443.8 ) and would be the costliest small car in India.

A longer homologation process, he added, was standing in the way of launching BMW India's crossover sports utility vehicle (SUV), the X6. Since the process would take over six months, there was little possibility of launching the X6 in 2008.

Kronschnabl told reporters that his company was "actively considering" sourcing of more components from India and that BMW was interested in sourcing forging and castings, among others.

The president of BMW India Private Limited also introduced the BMW M3 car in Chennai. M3, the fully imported car, costs Rs 7.3 million.

In 2007, BMW sold 1,387 vehicles in India – exceeding its own target of 1,000 units – and hopes to sell at least 2,000 cars in 2008.

With a view to facilitating better after-sales services, BMW is planning to set up service centers in tier-2 cities, Kronschnabl said. The cities being considered are Coimbatore, Surat and Jaipur.

Some reports have said that BMW might redevelop the classic Isetta bubble car and incorporate features such as hybrid technology and high-performance petrol and diesel turbo engines. Meanwhile, rumors are rife that an all-electric city car is also a possibility. It is being said that BMW is planning a micro car by reviving and redeveloping its Isetta, in its bid to compete with the Toyota iQ and other similar vehicles.