BMW and Mercedes change positions in India
Clearly it's not been a great quarter for BMW. And maybe this is one of the reasons the company has been so cagey about its sales numbers. Even after our repeated attempts, BMW refused to share the data or comment on its performance for the quarter. But, unofficial estimates put this figure at just under 1500 units.
And this can't be good news for the Bavarian carmaker, especially with Audi and Mercedes both registering in excess of 2000 units. What makes the situation even more challenging for BMW is that it has no new offerings in the pipeline for the immediate future. The brand new 3 Series is less than a year old, while BMW's cheapest offering, the X1, was updated less than three months back. The only car that is due for an update is the 5 Series but that too isn't due anytime soon. However, by the end of the year things should start seeing a turn when BMW brings in the much awaited 1 Series, a premium hatchback with a choice of 4-cylinder petrol and diesel engines that will appeal to a wider audience.
In the interim, the dealers can probably sense the difficult times, because even after repeated statements by Philipp von Sahr, President, BMW Group India about BMW not getting sucked into the business of offering discounts like its competitors, the dealers are more than happy to do so. Not only are the dealers willing to give hefty cash discounts, they are also making the purchase even more affordable by offering tailor made finance schemes. While these schemes and offers may be bringing in consumers, the premium brand image they enjoy is taking a beating.
Mercedes in the meantime managed to sell 2009 units in the same period under consideration. With it, Mercedes not only managed a little over 5 per cent improvement over its performance compared to same time last year, but it also managed to beat BMW and move up to second in the numbers game in the luxury segment. Now this is of course good news for Mercedes, because this month alone it will add two new offerings to its line up, further strengthening its position. The first will be the new GL, but more importantly, Mercedes will launch the A-Class hatchback in the country towards the end of the month.
The A-Class will be Mercedes' cheapest offering in the country yet and will be available in both petrol and diesel versions, namely the A 180 (petrol) and the A 200 CDI (diesel). The diesel may sell more and with an aggressive price tag, it should find quite a few takers. However, in the current fuel price environment we also expect the petrol A-class to do exceedingly good numbers.
The A-Class will be followed by the diesel version of the B-Class and of course the facelifted version of the E-Class, both of which are sure to add to Mercedes' sales kitty further. The E-Class, by the way, was Mercedes' highest selling model in the country last quarter.
Eberhard Kern, managing director and CEO, Mercedes-Benz India said, "We are very satisfied with the company's performance in this quarter." And added, that there were several exciting product launches slated in the next months, and riding the wave of these fascinating products, Mercedes envisages a double-digit growth in the next quarter.
