BMW faces slid on its position
Without any remedy to heal the hit, BMW is in a somewhat pathetic position as it lost its top slot second time. The company could not resist the fierce competition from Mercedes Benz which fetched 403 units in January. Of these, 130 units belonged to C-class, 245 to E-class and 22 units belonging to S-class. 82 units were brought as CBUs. On the other hand, BMW’s sale performance was 341 cars of which 192 belonged to 3-series, 112 to the 5-series, single piece of 6-series and 16 units belonging to 7-series X3, X6 having 7 each; X5 got 2 while Z4 got 4 units.
The comparative figures for the month of December were 334 by Mercedes and 280by BMW. The factor which made the difference is still a mystery because for the first 11 months of 2009, BMW enjoyed the supremacy in luxury car segment. BMW has chalked out strategies to meet the year 2010, said its spokesperson. But the real factor is that Mercedes has been in India for much longer period than that of BMW. Customers just wanted to exert a sort of craze towards BMW, but Mercedes has an edge over BMW with its brand status and reputation. Mercedes had to face field hindrances like extinct of its E-class due to switch over of the model. The company could not feed new model on time, while the old model too could not be availed by the customers.
The reasons attributed for the shortfall of sale for Mercedes were refining the infrastructure and expansion scheme. BMW wooed the customers with its fathom of luxurious showrooms and door delivery. The BMW studios served as the brand centres at important spots. Sensing the success of this strategy, Mercedes took the leaf out of BMW’s plan and expanded its sale network across the country.
According to the MD&CEO of Mercedes India, the company has invested Rs150-200 crore for expansion plans meant for another 8-10 months. The company is to boast its strength with its 26 cars at Gurgaon, a largest in SE Asia. The race will be intense between these two car makers as they are on the line up of introducing new models soon. Further, these luxury makers would knock at the doors of rural segments and mini cities.