The ruling luxury automaker of the country, BMW is under little pressure due to flourishing competition in the market being offered by compatriots. And as per speculations, the premium auto giant is likely to face weakest growth this year. Other few reasons hampering the growth are market conditions and depreciating rupee.
BMW India Head, Andreas Schaff also mentioned that the market conditions are tough and new purchases are turning difficult. The brand is finding it hard to convert customer inquiries into sales. He commented, “As per current scenario, we are not expecting too much and the growth is expected to be single digit this year, somewhere around 5%. If we hope little more, the growth will not exceed more than 10% in 2012.”
The luxuriant auto brand BMW is planning to commence its export journey from India by the end of this year. Basically the local market is getting extremely competitive and brand’s rivals are speedily progressing towards their target, aiming to get to the top. The compatriot is none other than admirable automaker Audi, which is aggressively running in India with tremendous growth of 43% during a January-June 2012 period. On the contrary, BMW confronted 1% slash in sales in the first half of 2012. Apart from rival Audi, new emerging competitor like Tata owned Jaguar Land Rover (JLR) is also aggressively moving in the market, offering severe competition.
Andreas Schaff also stated, “The pressure exists but we are confident of maintaining the competitive edge. Basically people want to experience the exquisiteness of different products and thus the competition turns fierce.”
The company is too executing greater plans for itself in terms of marketing strategies and is planning new retail expansion strategy in the country. And few more new launches along with refreshing marketing techniques will help the automaker add good numbers to its volume.