Chennai: At a time when many automobile companies are showing signs of wilting under the slowdown effect, BMW India is on an expansion mode and is building strong business models to garner a lion’s share in the market.
"We are one of the few companies expanding our dealership network and covering white spots," says Rudratej Singh, president and CEO, BMW group India. “We are in a mobility revolution and I am confident that BMW will be one of the thought leaders in that revolution. We are involved in deep partnership with 100 plus startups in building more than products for technologies which will help reshape the role of BMW in the transformation of mobility across the world and India,” he said.
Mr. Rudratej who visited the German luxury carmaker’s plant here on Wednesday described the slowdown as a “short-term volatility, which the industry is facing. “We are a long-term oriented organisation globally and in India too. Our strategy is both to gain segment share and also expand the luxury segment and we are undeterred by the temporary blips,” he says.
On the cards is to expand the dealership to 50 locations from the present 38, in a year’s time. Mr. Rudratej who took over as the company’s new president and CEO, about 21 days ago, is all praise for the BMW’s plant in Chennai. “This world-class plant will give great degree of flexibility to scale up and to make it relevant for India. We have a unique situation to look at long term growth and be part of the growth agenda of India,”
Product offensive, market and brand offensive are the three pillars on which the BMW would focus.
Luxury segment under indexed
The luxury segment in India is still highly under indexed. It is less than one percent (35,000 - 40,000 units) of the total auto sector (passenger cars) accounting to 3.5 million. Averring that this situation should transform, he said he hopes to narrow all barriers and ensure the BMW garners a lion’s share in the market.
Industry should create demand, not be concerned about slowdown:
Asked if the Centre’s booster dose help to give a fillip to the automobile industry, Mr. Rudratej said, under the current situation the Centre, despite it's constraints and limitations, is trying to improve the situation. But, the onus is on the industry to create demand in the market rather than be concerned about the under utilised capacity of supply, he said.
“Each company has its own strengths and brands, and if the companies and brands actually focus on market development, and brand development and truly recognise that brand is greater than product, (then) instead of creating product push, create brand pull. It will develop the market and integrate the organisation into where the mobility is headed with our new customers,” he suggests.
The BMW is able to focus on building brands, which have a great pull. “Our brands deliver a promise of sheer driving pleasure and our products deliver the driving pleasure. Plus, the experiences we offer to our current customers build an ecosystem which is very unique and aspirational for more people to participate in that ecosystem. This is what I mean by creating a demand and developing the market,” he said.
The BMW has a strong and well balanced portfolio. One third of the portfolio with the entry level luxury X1 is playing a strategic role, and one third of the 3 series will grow in terms of numbers. All the new launches are straddling various sub segments.
