Category Archives: BMW

Stock Markets Trade Flat; Aptech, HCL Tech Zoom

Stock Markets were trading flat in the afternoon session on Thursday. BSE Sensex was down by 30 points at 19960 while NSE Nifty was trading with a loss of 11 points. Most of the heavyweight index stocks were trading flat.

Among major gainers in today’s session were PNB (trading 4.8% higher), HCL Tech (trading 3.8% higher), Ambuja Cements (up by 2%) and Aptech (trading with gain of over 11%). HDFC touched 52-week high of Rs 900 in today’s trading session.

Among major losers were Sun Pharma, Ranbaxy Labs, Axis Bank and NMDC. Standard Chartered has expressed positive sentiment about the earnings for fourth quarter from majority of Indian companies.

German car maker BMW’s Indian arm received Rs 650 crore showcause notice from Income Tax department.

Indian markets are expected to remain rangebound for today’s session. Asian markets closed mixed on Thursday.

Top Stories in Indian Automobile Sector this week

This week, BMW India said that the luxury car maker will be aggressive about Indian market and will bring out coupe version of 6 series. The company has also planned to launch BMW 3 series convertible by the end of this year in India.

BMW has been doing pretty well in India and owns mor than 40% market share in premium car segment. The company president Andreas Schaaf is confident that they will be able to sell over 10k cars this year. The company has already sold 5364 cars till July. With the new model launch and better marketing efforts, the company can reach around 50% market share in India.

BMW X3 launch was delayed in India due to technical reasons. The car has been recenly launched with starting range of Rs 42 lakh.

To compete with market leader BMW, Audi has reduced the price of 2.0 litre TDI engine Q5 price to 35 lakh. Audi has been trying hard to increase its market share in India. As other markets in Eurozone and US still face lower sales, the premium car segment has been growing in India.

BMW has also raised its Chennai plant capacity to meet rising demand in Indian market. The company has capacity of making 11k SUVs and cars at present.

Another car maker betting high on the Indian market is Renault Nissan. The company informed that its Chennai facility has reached 100k petrol engine milestone. The plant started petrol engine manufacturing May 2010.

The Chennai facility manufactures Renault Fluence and Micra at present and plans to shortly start Renault Koleos and Nissan Sunny. Companies are expecting mid size car markets to have better growth in coming quarters.

Volkswagen was not able to impress the Indian consumer with its Jetta. However, the company is trying hard to bring back customer interest with an updated version launch. The Jetta comes with diesel engine and offers better performance.

Jetta Trendline is priced at Rs 13.8 lakh while Jetta Highline DSG comes with a price tag of Rs 17.47 lakhs. Time will tell if Indian consumers will buy the car which offers good performance but seems expensive at current price tag. There are many other options in this price range and some cars which offer better value for money.

Hindustan Motors-Mitsubishi has launched limited edition Mitsubishi Outlander Chrome with a price tag of Rs 20.5 lakh. The car comes with side skirts, upgraded interiors, LED floor illumination lamps and many other features which add class. There are many more options for SUV lovers in India now.

BMW India to Intensify Its Luxury Car Segment

German automobile giant BMW has been aiming to expand its luxury car segment in India by 10 times over the next 10 years.

The company has recently launched its X3 vehicle priced between Rs 41.2 lakh and Rs 47.9 lakh.

BMW India President Dr. Andreas Schaaf during the launch of BMW X3 SUV in Pune stated that the luxury car sales in India have been witnessing growth and the company has been expecting a boost in the near future. He said that BMW India has been anticipating 60,000 units’ sale annually by 2021 and soon they will be investing Rs 70 crores to heighten its sales.

Dr. Schaaf announced that their annual production capacity has increased since June as BMW India’s only manufacturing and assembling unit in the country is located in Chennai where the production capacity has increased by
1,000 units.

“We have expanded our production facility by starting the second shift of production. The production has been expanded to 11,000 units annually from 10,000 units”, Dr .Schaaf said.

Also, in March, the company had increased its production capacity from 8, 000 to 10,000 units per year in single move.

Dr. Schaaf added that that if required the company will add another assembly line and will increase the output of the second shift by adding more production.

BMW to improve Chennai plant capacity

German vehicle manufacturer BMW has announced to improve its production capacity at its Chennai plant. BMW India President Peter Kronschnabl has said that Indian auto market is developing remarkably by these years.

For the year 2010, the company is eying to get a double digit growth figure with a minimum sales volume of 4,000 vehicles. Therefore the company is planning to manufacture more from its Chennai plant so that the supply can catch the demand in the market.

Now the BMW Chennai plant has a capacity of 3,000 units per annum. Last year BMW has sold 3,619 units of luxury cars as compared to 3,247 units of its major rival Mercedes.

Kronschnabl has also informed that BMW is having an excellent market share of 41% in the premium segment of cars in India. It was around 9% in 2006. In between these three and half years the firm has performed reasonably good to capture such a commanding market share.

Moreover, he has said that BMW is going to invest more on its plants and working to enhance the capacity and soon there will be an official announcement on this issue.