BMW performs better than peers, gains market share

MUMBAI: Led by a robust pipeline of products launched over the past one year, the Munich-based luxury carmaker BMW has outperformed peers in the Indian market in challenging times, increasing its share by more than 500 basis points.

BMW India increased its share in the luxury segment from 19% to 24% in the last three to four quarters, and is aspiring to gain a further 1-1.5% share in 2020, led by its portfolio range and freshness, and expanding reach.

The company said that it is better placed due to a revamped product portfolio and aims to do better than the overall market, which is seen down 20% in the first nine months of 2019 at approximately 28,000 units.


The Bavarian company sold 7,049 units from January to September this year (6,589 units of BMW cars and 460 units of MINI), registering a decline of 11%. In the same period, its closest rival Mercedes Benz India reported a decline of 16% to 9,915 units.

BMW said that while volumes will remain in negative territory in 2019, in 2020 it aims to come back in the green.

Rudratej Singh, MD of BMW India, told ET that several factors – structural, economic, cyclical and regulatory changes – have combined to create an environment that has hit demand. Singh said he expects demand to gradually recover in the next three to four quarters.

“I see a slow and steady progress rather than a radical change in the demand environment. We are still to see the churn on account of transition from BS IV to BS VI. It will be a story of two halves in 2020 – in the first, there will be churn, but I expect demand to grow in the second. Overall, 2020 will be better than 2019,” Singh said.

Over the past 12 months, the company launched more than half a dozen BMW cars, including 3 Series, X4, X5, X5,X7, Z4, and the 7 Series, among other models. Besides product expansion, the company is increasing its touch points to 100 in the next 12 months.

According to Singh, there is ‘no perfect or right time’ to bring in positive regulatory changes that improve the environment and safety.

“This is probably the best bad time to bring about a positive change, especially on regulations. We are positive on the future and our direction of vector is in the right area. We are very competitive; we have managed to gain a larger pie from a shrinking pie and we consciously chose to have a product offensive this year and it is paying off,” added Singh.

The former Unilever executive said the focus is on ensuring that these new launches are executed well.

“The goal is to increase the overall market size. I believe that leading growth in the segment is more important than just being a volume leader. I am confident that we will continue to increase share even in the next year by about 100-150 basis points,” he added