BMW starts production of 5 Series luxury cars in India

by Gunjan

There is a market for any product at any price in India. Most stories in the West have focused on the Tata Nano, the lowest cost car in the world, and while other low cost cars such as the Suzuki’s Maruti line, entries from Hyundai, Renault, and even GM/Ford are lining up for the the low end.

Affluent Indians have long lusted for the Mercedes Benz and Rolls Royce name plates. In fact there Mercedes recently invested $50 million into upgrading its India sales network, according to India Managing Director Wilfried Aubur. I first heard of the  Maybach when Airtel billionaire Sunil Mittal was reported to have bought one in India. Today Land Rovers are available in India. So BMW’s presence in India should be no surprise.

BMW 523i

BMW is a late entrant to the India market. The 523i, 530d and 525d will be produced as completely-knocked-down units at BMW’s Chennai facility in South India and priced from $80,000 to $120,000. Chennai is home to several auto factories including Leyland and Hyundai.

If you want to sell your company’s product to India, don’t prematurely dismiss the market as too complex, too poor, too small or too anything. Your competition may surprise you with a successful entry, if you do.

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Posted on July 14th, 2010 by Gunjan
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. He is author of Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market (Hachette Book Group, July 2008).

1 comment

1 Shaantanu { 08.03.10 at 6:09 PM }

Many companies are entering the competition for the low end car market in India. But do the cars manufactured for this market really have the safety standards as stipulated by other countries.

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