‘The international semiconductor scarcity has inadvertently offered an immense fillip to the pre-owned automotive market’
All {photograph}: Kind courtesy BMW India
BMW India not too long ago logged the sale of its 100,000th automotive in India, the quickest amongst the German trio of luxurious carmakers to achieve this milestone, in the 14 years it has been in operation right here.
Vikram Pawah, president and CEO, BMW Group India, talks to Pavan Lall about the market challenges, when the firm will go massive with electric and why the hole between premium vehicles must be bridged.
How’s the pipeline in search of you — do you might have extra launches deliberate this yr?
BMW Group India had deliberate to launch 28 merchandise this yr: 15 BMW; 5 MINI; and eight Motorrad.
Of these, 27 have been launched. These embrace the BMW 3 Series Gran Limousine, the new BMW 5 Series, the new BMW 6 Series Gran Turismo, the BMW 220i M Sport, the BMW 3 Series Gran Limousine Iconic Edition, the BMW 740Li Individual Edition, and extra.
The twenty eighth, a variant of the 2 Series Gran Coupe, will be launched quickly.
IMAGE: BMW’s 3 Series Gran Limousine.
Which vehicles have been driving gross sales for you and what’s your subsequent massive problem?
The subsequent massive problem is to develop this market, which is being hindered as a result of the general automotive market ought to have been no less than at 5 million items by now.
It was around 2.7 million for final yr.
The authorities’s goal — of round 9 million items a yr — is achievable.
We can develop at 12 per cent a yr in a market the place penetration is so low, and particularly now when mobility is bouncing again strongly after Covid-19.
But the coverage framework should be sure that automotive rotation occurs extra regularly.
The bestsellers, as regular, driving gross sales for us have been the X1, the 3 Series, the 3 Series Gran Limo, the 5 Series and 6 Series.
Those are the pillars which have been pretty constant and steady over the years.
IMAGE: Vikram Pawah, president and CEO, BMW Group India.
Where do you see gaps in the premium or luxurious markets, which you’ll be able to exploit from a product standpoint?
If you might have a automotive that prices round Rs 15 lakh and is premium, then the subsequent degree goes all the approach as much as Rs 30 lakh and even Rs 40 lakh (there aren’t many, if in any respect any, luxurious vehicles in the Rs 20-25 lakh vary), and it turns into an enormous stretch (for a client to leap to the subsequent class of autos).
So that does two issues. It both dampens the curiosity to purchase that automotive or it stretches the wait.
This yawning hole delays gross sales and buy. That’s the section (premium and luxurious) that should see taxes rationalised.
You have to grasp that in most economies round the world, the premium section contributes between 5 per cent and 10 per cent to the sector, whereas in India it’s lower than 1 per cent.
There’s rather a lot of buzz round electric vehicles in your peer group. What are your plans?
We will deliver two new electric vehicles subsequent yr: the iX and the i4.
The precise timing will be determined later however it will be subsequent yr.
Eventually, all our electric models will come into the Indian market.
IMAGE: The BMW 3 Series Sedan.
How are you tackling the chip scarcity?
The BMW Group has made particular person advertjustments to the manufacturing programme to take account of the restricted availability of semiconductor elements.
Thanks to its versatile manufacturing system and work-time models, the group is ready to make advertjustments at a comparatively quick discover and was capable of compensate for the difficult semiconductor provide issues arising in the first six months of 2021.
Nevertheless, the BMW Group expects the provide situation for semiconductor elements to remost important troublesome.
Production restrictions could be anticipated to proceed in the second half of the yr.
Our purpose is to make sure provides proceed to achieve our vegetation.
We ordered the required volumes for 2021 at the acceptable time and anticipate our suppliers to fulfil these orders as stipulated by the contract.
We are monitoring the scenario very carefully and are in fixed communication with our suppliers in relation to this.
IMAGE: The BMW X1.
How are your used vehicles doing in a market the place there are provide chain shortages? Have their costs gone up?
BMW Premium Selection performs an vital function in the success of our firm.
It is the first structured pre-owned premium automotive enterprise in India and is distinguished by its unique strategy.
Since launching it in 2012, we’ve got seen an over 200 per cent development in the pre-owned automotive gross sales.
This yr, the international semiconductor scarcity has inadvertently offered an immense fillip to the pre-owned automotive market.
BMW vehicles persistently command good resale worth in the pre-owned automotive market.
With the present scenario, we’re experiencing excessive extra demand, which is reflecting in the market costs as effectively.
The value at which clients are prepared to safe a pre-owned BMW has elevated.
Feature Presentation: Rajesh Alva/Rediff.com
