In 2006, BMW made its entry into the Indian auto market. It was a significant milestone for the German automaker, which had been eyeing India’s burgeoning middle class for some time. The move marked the start of a new era in India’s automotive industry and opened the doors for other international car manufacturers to enter the market. In this article, we will take a closer look at when BMW launched in India, the company’s journey so far, and its impact on the Indian auto industry.
History of BMW in India
Pre-Launch Preparations
Before BMW entered the Indian market, it conducted extensive research to assess the market potential. The company knew that India was a price-sensitive market, and it needed to offer products that were both high-quality and competitively priced. BMW partnered with Indian car manufacturer, Hero Group, to set up a production facility in Chennai.
Launch in India
BMW officially launched its operations in India in January 2007. It entered the market with three models: the BMW 5 Series, BMW 7 Series, and BMW X3. Initially, BMW faced some challenges in the Indian market, including a high customs duty and a lack of awareness about the brand.
Expansion and Growth
Despite the initial challenges, BMW continued to expand its operations in India. It launched several new models, including the BMW 3 Series, BMW X1, and BMW X5. In 2010, BMW opened a new production plant in Chennai, which further strengthened its presence in India.
BMW’s Current Position in India
Today, BMW is a well-established player in the Indian auto industry. The company has a wide range of products on offer, including luxury sedans, SUVs, and sports cars. It has also set up a vast network of dealerships and service centers across India, making it easy for customers to access its products and services.
Impact of BMW on the Indian Auto Industry
Introduction of Luxury Cars
BMW’s entry into the Indian auto market marked the introduction of luxury cars in India. Until then, Indian customers only had access to mid-range cars from local manufacturers. BMW’s presence in India opened up a new segment of the market, which catered to the growing demand for luxury cars among India’s affluent middle class.
Boost to the Indian Auto Industry
BMW’s entry into India gave a much-needed boost to the Indian auto industry. It encouraged other international car manufacturers to enter the market and invest in India. Today, India is one of the world’s fastest-growing auto markets, with several international manufacturers having set up production facilities in the country.
Creation of Jobs
BMW’s production plant in Chennai has created several job opportunities for Indians. The company employs over 2,000 people directly and indirectly, including engineers, technicians, and other support staff. Additionally, BMW’s presence in India has also created job opportunities in its dealership and service center networks.
Conclusion
BMW’s entry into the Indian auto market in 2006 was a significant milestone in the history of the Indian auto industry. The company’s presence in India has not only introduced luxury cars to Indian customers but has also boosted the industry’s growth and created job opportunities. BMW has come a long way since its launch in India, and its future looks bright in the country.
FAQs
- When did BMW launch in India?
- BMW launched in India in January 2007.
- What were the challenges faced by BMW in the Indian market?
- BMW faced challenges such as high customs duty and lack of awareness about the brand.
- What models did BMW launch in India initially?
- BMW launched the BMW 5 Series,