BMW to launch its Roadster Z4 in India

World’s top luxury and sports car manufacturer BMW has said it will launch its Roadster Z4 in India later this year. Roadster Z4 is top two seater sports car that company believes will attract hip and prosperous Indian youth.

BMW is very optimistic about its chances in the Indian market. It plans to launch at least half a dozen new cars here before the year end.

Its plans are not without any basis. The company has already replaced Mercedes Benz this year as the top luxury car brand in India.



After World War I, BMW was forced to cease aircraft (engine) production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 1928.

The circular blue and white BMW logo or roundel is often alleged to portray the movement of an airplane propeller, to signify the white blades cutting through the blue sky - an interpretation that BMW adopted for convenience in 1929, which was actually twelve years after the roundel was created. In fact, the emblem evolved from the circular Rapp Motorenwerke company logo, from which the BMW company grew. The Rapp logo was combined with the blue and white colors of the flag of Bavaria to produce the BMW roundel so familiar today.

The BMW Z4 is a rear-wheel drive sports car by the German automaker BMW. Replacing the Z3, first-generation production started in 2002 at BMW's Spartanburg, South Carolina plant, with both roadster and coupe forms produced. Starting with the 2009 model year, the second-generation Z4 is built at BMW's Regensburg, Germany plant as a retractable hardtop roadster.

The German auto giant’s cars are seen as the most modern cars on Indian roads, more particularly in Indian metros. They are becoming ubiquitous on potholed Indian roads.

The German auto giant sold 2,908 cars in India in 2008, its second year of operation, closing the gap with luxury car leader Mercedes-Benz, which sold 3,625 cars in the same year, which was also its 12th year in the country.

Earlier BMW India announced to launch five new cars in 2009. It has already introduced the all-new 7 Series sedan and the new 3 Series sedan. The SUV X6 and X3 diesel and a new sports model will be launched sometime this year.



The first-generation BMW Z4 was designated the E85 in roadster form and E86 in coupé form. It was designed by Danish BMW-designer Anders Warming, who later made the Mille Miglia Concept car with some of the same shapes as the Z4.

The Z4's design addresses many criticisms of the preceding Z3; the Z4 is larger, and has a significantly stiffer chassis. The Z4 features a strut type front suspension like its predecessor. The rear suspension, however is considerably different from that of the Z3, which was based on that of the E30 BMW 3 Series.

Instead of a semi-trailing arm suspension, the Z4 uses a more advanced multi-link suspension. It was built in Spartanburg, South Carolina. Initially, the Z4 was available only as a roadster, but in 2006 a coupé version was officially launched. The last of the first-generation Z4 to be assembled in North America rolled off the assembly line on 27 August 2008.

In the meantime BMW India has said that it will add 10 dealers in tier-II cities such as Coimbatore, Jaipur, Lucknow and Ludhiana.

A top company official says, ““We grew 15% in the first quarter of 2009 and surpassed Mercedes Benz in the sales tally”.

The company overtook Mercedes Bens in January this year becoming the more preferred luxury car in the country.

BMW sold 181 more cars than Mercedes in India in January. Two mighty luxury car makers BMW and Mercedes are locked in a fight for supremacy in India. The war is going on with the entry of German car giant’s India entry a few years ago.

BMW targets tier-II towns to retain top spot

BMW India is chalking out robust plans to retain its number one position in the Indian luxury car market. Having snatched the top spot from Mercedes Benz a few months ago, it plans to hang on to it by spreading its dealerships into smaller 'tier-II' cities, planning to double in its dealership network to 24 by the end of the year.


The Indian arm of the Munich-based company has indicated that after enhancing its presence in the tier 1 cities, it is now zeroing in on tier II cities like Coimbatore (where it opened a sales and service outlet on Thursday), Jaipur and Lucknow. The company, which currently has 12 dealers in 10 cities, will add 10 more dealers in 10 tier II cities by the end of 2010.

"In the first quarter of the year we have delivered 992 cars, which make us the number one player in the luxury segment. We don't know if we will remain the number one by the end of the year but we are on track to stay there," BMW India president Peter Kronschnabl told reporters at the company's plant in Gurgaon.

He said the company expects each dealer from Tier II cities to contribute about 30-40 cars per year. He added that while the standards of BMW dealerships were the same across cities, those in the smaller cities would have only one or two cars on display.

Kronschnabl, however, declined to forecast the company's sales target for the year stating a clear picture would emerge only after the second quarter.

Asked if the global slowdown has in any way made the firm alter its expansions plans in India, he replied in the negative. "Instead, we are going ahead. We are working at the same pace as before despite the slowdown. While we won't expand production capacity as we have enough, our focus is to expand our sales and service network," he said.

Kronschnabl said financing remains a challenge and sales could have been better had it not been for the difficulty in financing credit purchase of cars. He said currently BMW has tie-up with ICICI Bank for car finance, and "we have also tied up with HDFC Bank as a financing partner from this year".

He also said BMW's global component sourcing from India is going as planned. "We have identified a couple of partners and the next stage is to go for sampling and in the next two years we expect the volumes to pick up."

In the luxury segment, BMW competes with compatriots Mercedes Benz and Audi. According to data from the Society of Indian Automobile Manufacturers, in fiscal 2008-09, BMW sold 3,038 units against 3,537 units sold by Mercedes. However, between January and March 2009, however, BMW sold 992 units to Mercedes' 966 units.

Currently, BMWs cost between Rs27 lakh (320i model) and Rs1.31 crore (M6 convertible). The company recently rolled out an all-new 7 Series sedan priced at Rs93.3 lakh and the SUV X6. It will introduce the new 3 Series sedan and X3 diesel SUV during this year.

Coimbatore foray
BMW India on Thursday opened its Kun Exclusive dealership in Coimbatore. This is a satellite facility of Kun Exclusive, Chennai, the dealership partner for BMW India in Tamil Nadu.

The facility is located on Aerodrome Road near N K Palayam, Ondipudur and comprises a fully equipped workshop and sales outlet at the same location. The facility covers approximately 5000 sq ft and that includes almost 500 sq ft of new car display area. It claims to offer the same standards of sales and service and the same customer experience as any BMW sales and service centre worldwide.

Commenting on the occasion, Owen Riley, director, after-sales, BMW India said, "We are proud to announce that our sales and service facility in Coimbatore is now operational. This facility, in partnership with Kun Exclusive, also initiates phase II of our expansion in India and is reflective of BMW's efforts to connect with customers and prospects across the state to provide high quality services that are at par with international standards."

Maruti to launch Ritz on May 15

Maruti Suzuki on Saturday said it will be launching its premium compact car Ritz on May 15 in Delhi in straight competition with its other premium compact car Swift.

"Ritz will directly compete with Swift. In the past, when we have launched cars in the same segment, it has helped the market to grow," Maruti Suzuki's managing executive officer, I V Rao, told reporters here.

"With the launch of Ritz, our customers would have two cars to choose from in the same category," he said.

Ritz and Swift would compete with Fabia, Getz, UVA and i20. Swift has been estimated to have a market share of 75% in the compact car segment.

In the next couple of years, seven new cars are being planned to be launched in the compact car segment by various car makers.

Swift, launched four years ago, has been a successful product of Maruti. At present, Maruti sells about 10,000 Swifts a month, Rao said.

The company has put up a new assembly line for Ritz at its factory in Gurgaon.

Last year, Maruti launched Swift in the European market. It makes Swift at a plant in Hungary.

Mahindra Renault plans two new launches this year

French car maker Renault is looking to introduce up to two new models in India with its partner Mahindra & Mahindra this year, although it has indefinitely postponed plans to launch products from its Chennai facility.

"Our Nashik facility (capacity) is under-utilised. We are actively looking at introducing one or two new models from the plant in this year in order to have better utilisation of the capacity," a Renault India spokesperson said.

Renault's joint venture with M&M -- Mahindra Renault Pvt Ltd -- currently makes the Logan at the Nashik plant, which has an installed capacity of 50,000 units per year annum. It had produced 14,404 units in 2008-09 compared to 26,653 units in the previous fiscal due to fall in domestic car demand.

"We want to fully utilise the capacity," the official said, but declined to give details of the forthcoming launches.

Besides, the domestic market, the cars would also be exported to neighbouring countries, he added.

Renault had indefinitely put on hold introducing its cars in the Indian market from its upcoming Chennai plant on account of global slowdown, which has affected the firm's worldwide operations.