After China, BMW has decided to focus on increasing its sales in India to become the market leader in the premium car segment.
Compared to China, the premium car segment is a tiny market where only 4,400 cars were sold last year. BMW sold 1,387 vehicles last year and plans to sell 2,000 units this year. With estimated sales of 10,000 units in 2010, BMW aims at becoming the leader by increasing its investments there.
BMW is currently assembling its models at its Indian factory located in Chennai, but until recently, the company was importing kits in completely knock down (CKD) condition. Now, 10 per cent of the components are sourced from India and BMW wants to increase the share of Indian components. BMW India President Peter Kronschnabi said that the company was screening the Indian auto components industry for its plans to make the country a major source for outsourcing for the German carmaker.
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