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.

Fiat launches new model, plans doubling sales by 2010

Car manufacturer Fiat India is likely to double sales by 2010, a top company official said here Thursday.

“We are anticipating more than 40,000 sales in the current year (2009) and we hope to double it by 2010,” Rajeev Kapoor, president and chief executive officer of the company said on the sidelines of the launch of Fiat Linea - a sedan with diesel and petrol variants.

The total sales - domestic sales along with export - last year were only around 4,500 units, he said.

After Linea, the company plans to launch two more models this year, he said.

“During recession there is always an opportunity because consumers become more choosy about what they want to purchase. Secondly, the only way to beat recession is to come up with launches. Wait and see how many launches happen this year,” Kapoor said.

Apart from doubling sales figure, the company will also be looking at new markets. “We will be at new markets in 2010. Our focus will be Australia, New Zealand and the UK, all right hand drive markets,” he said.

The company is planning to launch, a two-door lifestyle car Fiat 500 in the city in February, the Fiat India CEO said.

The company is a 50:50 joint venture between Fiat Group Automobiles and Tata Motors.