BMW Plans to Take Dealer Presence to 60 Outlets in India by 2015

With the influx of luxury car manufacturers in India, the competition has increased as well, prompting many of them to venture beyond metro markets into tier II cities as well. BMW India is reportedly looking to increase their dealer presence in India. The company is reportedly planning to almost triple their dealer base in India from the present 22 to a total of 60 dealer outlets by 2015.

This move would decrease the manufacturer’s dependence on their main markets of Mumbai and Delhi. BMW India recently claimed the number one position among luxury car manufacturers in India with its 22 dealer outlets, which they plan to take forward to 60 dealer outlets by 2015.

BMW India’s President, Andreas Schaaf was quoted as saying that once they increase their dealer outlets in other regions of India, the share of their Mumbai and Delhi markets would decrease to 40% from the present 60%, as they look forward to increasing their sales in other regions. He added that while some of their soon to be outlets would bring in a small number of sales; however it would lay the foundation for additional development.

Schaaf also said that their Chennai market, where they currently lead in the luxury segment, would make up for a tenth of their total sales by then. He added that last year was a neck to neck race for them with Mercedes. This year they are growing faster than even last year. BMW India is hoping to conclude 2011 with sales of around 10,000 models.

This target represents the company’s full production capacity at their Chennai facility in just one shift. The manufacturer has already bought more land adjoining their existing facility in case of further expansion. Schaaf also added that the luxury market in India could increase to around 1,50,000 models by they year 2020.

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