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BMW vs. Merc – The Tigers Fight to Top Luxury Car Sales in India

By Motortrend India Staff   |   17 February,2008

The successful performance in car sales in India in 2007 has boosted the confidence of German luxury car manufacturer BMW. BMW has expressed interest in seriously competing with Mercedes-Benz for the top spot in the luxury cars segment in India. This segment has seen an unprecedented growth in 2007. BMW recorded a 36.6 percent growth in 2007 with a sales figure of 1387 units.

David Panton, BMW Director of the Asia Pacific Region, said “We have set our sight to overtake Mercedes-Benz, whether we do it in 2009 or 2010 is a question of time.” The 2007 sales had far exceeded their expectations. It had initially targeted only 1000 units. They are now closer to reaching to numbers witnessed by the Mercedes-Benz. Mercedes recorded a sale of 2491 units in 2007.

The company has set a target of 2000 units for the Indian car buyers for the year 2008. The fast acceptance of the luxury car brand by Indian consumers has driven company officials to consider India as an important market vis-à-vis China.

Mercedes-Benz has made India its assembling hub since the 90’s. This has helped the manufacturer reduce the selling price drastically as compared to a completely imported unit. Mercedes plans to reach out to as many consumers across India as possible and has set itself a target of 3000 cars for 2008.

BMW was a late entrant and came to India in 2007. BMW has its assembling facility in Chennai, where the entry level 3 Series and now the 5 Series sedans are being produced. The emerging Indian economy has enticed the company to introduce five more models from its stable, including the M Series and the super luxury 6 Series and 7 Series sedans. With this introduction the number of BMW models available in India has risen to ten.

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