German carmaker BMW may have decided last year to scrap plans to bring its premium small car 'Mini' to India in 2009, but it is going ahead with sourcing components for the luxury marque from the country.
The company, which is eyeing the top spot in the Indian luxury car segment, today unveiled its new 3 Series sedan, whose petrol version is priced between Rs 26.90 lakhs (Rs 2.69 million) and Rs 32.9 lakh or rs 3.29 million (ex-showroom), and the diesel variant between Rs 29.5 lakhs (Rs 2.95 million) and Rs 30.5 lakhs or Rs 3.05 million (ex-showroom).
BMW, which set up an international purchasing office last year in India, has identified a couple of suppliers as it looks to leverage the country's low cost-high quality auto component industry.
"Going forward we will see more of made-in-India components in BMW's global products. The purchasing office will source components not only for BMW cars but also for the Mini, along with bike parts," BMW India chief Peter Kronschnabl told PTI.
He said the IPO, which has ten people so far, will see an addition of an expatriate, who will look after the sourcing for bike components.
Kronschnabl said the company was looking to source components such as forgings, castings and electronic parts.
"As of now sampling is being done with the vendors who have been identified and we expect to sign contracts in a couple of months," he said.
The company had last year decided against bringing the Mini in India as its study found the market conditions not feasible.
On its new offering 3 Series, he said the company expects the car to play a key role in BMW's efforts to shore up volumes in India "Last year we sold more 5 Series than 3 Series. This year we expect to have almost the same number between the two cars.
"The new 3 Series has features like the iDrive (computer controlled aid for features) that was earlier available in the 7 Series and 80GB hard drive, which should help attract discerning customers," he said.
In 2008, BMW had sold 961 units of 3 Series sedans as against 1,289 units of the 5 Series. Both the cars are assembled at the company's facility in Chennai, which has a production capacity of 3,000 units a year.
On Wednesday, BMW introduced its all-new 7 Series sedan priced at Rs 93.3 lakh or Rs 9.33 million (ex-showroom), while announcing plans to introduce the new 3 Series sedan, SUVs X6 and X3 diesel, during this year.
"Despite a difficult market, particularly in the last quarter, we were able to achieve all our targets last year. We are hopeful that we can become the segment leader sometime this year," Kronschnabl said.
In 2008, the company sold a total of 2,908 units and in the April-December period, it has clocked a total of 2,046, closing in on rival Mercedes Benz, which sold 2,395 units during the period.
