BMW skeptical Over Mini Launch

It looks like the German premium car maker BMW, is skeptical of launching its iconic luxury hatchback, the Mini in India. The launch of this hatchback was supposed to happen by the end of this year. BMW had announced its Mini launch plans during the launch of BMW X6, a sports activity coupe in India.
The Mini is a three-door luxury hatchback that was likely to be imported as a CBU in India. The BMW Mini would carry a price tag of Rs20 Lakh. The delay in the launch of this luxury hatchback owes largely because the luxury hatchback market in India is not developed. Moreover, BWM thought the investment to launch a new brand would be substantial in this condition. Any carmaker needs to look at the potential business opportunity before launching a car, especially when it’s a luxury car. BMW Mini would have faced a tough competition with the Fiat 500 if it had been launched in India at the prescribed date.
The German car giant would reconsider the launch of the Mini by the end of the third quarter of the calendar year. BMW competes with European rivals DaimlerChrysler (DCXGn.DE) and Volkswagen (VOWG.DE) in the premium Indian car market. This German carmaker makes the 3 and 5 series in India and also sells its 7 series from imported kits.
To strengthen the dealership network, BMW will set up dealerships in 10 more cities by the end of 2010. Presently, there are 13 dealerships in the country. The company has invested $30 million in India, including setting up a plant in Chennai.
BMW has lined up a slew of launches in 2009 like the new BMW 7 series, the new BMW 3 series, and a diesel variant of BMW X3.