India’s automobile demand slowdown has played spoilsport even with the luxury segment, indicate sales data released by German luxury carmaker BMW on Wednesday. According to figures released by the firm, its overall sales in the Indian domestic market in 2019 has fallen by 13.8 per cent compared to the previous year.
Sources say this less-than-inspiring performance is likely to repeat for other major manufacturers in the segment, with total demand for luxury cars likely to record a 10-15 per cent fall in the year.
“2019 was not an easy year for the Indian automotive industry as various macroeconomic and structural conditions shook its foundations,” said Rudratej Singh, president and chief executive officer, BMW Group India. “Though the industry is still facing difficult times, we are well prepared for 2020. We will always be competitive by remaining focused on customers,” he said.
In a statement summing up the last year, Audi India head Balbir Singh Dhillon had also echoed similar sentiments last month. “2019 was a challenging year for the automotive industry, thereby building the pressure on new car sales,” Dhillon had said. For BMW Group India, 2019 saw 9,000 units sold, while another 641 units were sold under its MINI India brand. BMW Motorrad, the two-wheeler unit, also sold 2,403 motorcycles during the year.
“We successfully initiated new consumers to come into the segment with the BMW 3 Series and the BMW X1. At the same time, we created a clear path for upgrade for segment users with the BMW X5, the BMW 6 Series Gran Turismo and the BMW 7 Series. We have a healthy order book for the BMW X7, which is sold out for months,” Singh said.
As for Audi, Dhillon said the company had strengthened its dealership network and launched a slew of consumer-centric services. Going forward, players in the segment say that the introduction of BS-VI in April could give a boost to demand.
“We are optimistic about 2020 and will kick-start the year with the launch of Audi Q8 in January, followed by Audi A8 in February, and other new products that will set the tone for the year. Effective April 01, 2020, India will take a leap into BS6 fuel from BS4 at present, driving all manufacturers to make adjustments to their product offerings in India, and so will we. In terms of growth estimates for the luxury car market, we estimate it to remain flat in 2020 and we are hopeful of positive growth starting 2021,” Dhillon had said.
BMW Motorrad sales saw 10% growth last year
BMW Motorrad, the two-wheeler arm of German luxury carmaker BMW, on Thursday said its sales increased by 10 per cent last year at 2,403 units from 2,187 units in 2018. “Despite the turbulence in two-wheeler industry, BMW Motorrad has been successful in achieving double-digit growth,” BMW Group India president and CEO Rudratej Singh said.
The company’s brand strength is that it has something in store for everyone, he said. “We cater to the requirements of purists while also fulfilling aspirations of a new base of brand fans who want to enter the Motorrad world.”