BMW postpones MINI launch in Indian market

21 April, 2008

Indian automobile enthusiasts have to wait some more time to get to drive BMW’s ultimate small car, the MINI. Considering the present market conditions, German sport-luxury car maker BMW is exploring options to postpone the launch of the MINI in India.

MINI was expected to hit the Indian roads in 2009. The company has postponed the launching of the Rs 20 lakh MINI for the time being citing non-viable market. The high interest rate, slowdown in the economy and increasing competition have been affecting many automobile companies in the Indian market.

According to BMW India president Peter Kronschnabl, the company has postponed plans to launch the MINI in India in 2009. This is based on a feasibility study conducted by the company for different MINI models. They felt that now Indian market is not ripe for the launch of the car in 2009 with such high import duties. Now import duties are as high as 113% on cars in India. Though the BMW brand has immense value in Indian market, the market potential is not good enough enough for bMW to bring in the MINI.

But they reiterated that the company has not cancelled plans for MINI but looking at a more mature market at the moment.

The company had earlier planned to import the small from its manufacturing facility in the UK and depending upon market response and demand, planned to assemble it at its Chennai plant.

BMW MINI is now popular brand in the US, Europe and Japan. The cheapest model of MINI is priced at around Rs 9.7 lakh in Indian rupees abroad. BMW India has already launched its sports utility vehicles X3 and X5 through the completely built unit (CBU) import route. It is also considering opportunities to bring in few models from its Rolls Royce brand in India. The company is also planning to increase its dealer network from 8 to 10 by the year end.