BMW India Grows Market With Mini

MUMBAI – BMW’s Mini hatchback, convertible and 4-door Countryman arrive here this month at the brand’s first showroom in India, making the country the 100^th market for the premium subcompact.

BMW already has 100 bookings for the Mini, which is imported as a completely built-up unit from the German auto maker’s Oxford, U.K., plant. Its retail price, including taxes, charges, fees, insurance and delivery begins at Rs3.5 million-Rs4 million ($70,000- $80,000) and the vehicle tops out at costs up to Rs5 million-Rs5.5 million ($100,000-$110,000).

BMW hesitated whether to launch the Mini at the relatively high price. It went ahead after the Fiat 500 and Volkswagen Beetle pioneered the segment’s entry into India. Mercedes-Benz plans to import its Smart brand and Renault recently launched its Pulse small car in the country.

In the 10 years that BMW has manufactured and marketed the Mini in the U.K., it has sold 2 million units globally. Over time, the auto maker has converted a single British model into a family of six variants.

“Mini is not about volumes,” BMW India President Andreas Schaaf says at the car’s India launch. “Our main focus this year is on brand building.”

BMW’s support for the Mini is well in place, thanks to establishing itself in the country during the past three years, virtually tying Mercedes for the sales lead among luxury auto makers.

Sales of BMW light vehicles jumped 59.8% to 9,982 units in 2011 following 6,246 deliveries in 2010, a 72.6% year-over-year gain, according to WardsAuto data. The auto maker has a parts warehouse in Mumbai, a network of 25 dealers, the dedicated Mini dealership that has opened in this city and plans to open five more Mini-only outlets this year, Schaaf says.

BMW has invested Rs1.8 billion ($36 million) in an assembly plant in Chennai with annual capacity of 11,000 units. The factory builds BMW 3-and 5-Series cars and X1 compact cross/utility vehicles with both gasoline and diesel engines, as well as a diesel-powered X3.

Six other BMW models and two Rolls-Royce cars are imported as CBUs.

All the Mini models use 1.6L engines and offer a 6-speed automatic transmission. Power ranges from 120 hp to 200 hp and from 118-177 lb.-ft. (160-240 Nm) of torque.

Mini hopes to capitalize on its exclusive image and emotional appeal to the growing numbers of middle-class Indians, Schaaf says.