STOCK MARKET BSE NSE

BMW looking to cash in on people spending on luxury cars amid COVID pandemic

According to a top company official, luxury cars, are one of those items which people would love to reward themselves with after the crisis is over.

Published: 18th October 2020 02:20 PM  |   Last Updated: 18th October 2020 02:20 PM   |  A+A-

BMW India

Image for representation (File photo | AP)

By PTI

NEW DELHI: With the coronavirus pandemic curbing international holidays to exotic locations, German auto major BMW is looking to cash in on people spending on luxury cars in India even as it expects sales this year to be lower than 2019, according to a top company official.

Like what has happened elsewhere in the world, the company expects car demand to pick up substantially in India as the country gradually moves towards fully opening up following phased lifting of the COVID-19 induced lockdown.

"The indication from the world, the countries which have gone through the flattening of the curve, is a stronger return of the auto sector, specially of the luxury sector because one of the important things to note is that when we are not travelling so much through international holidays or to exotic locations, we still want to be able to enjoy our freedom," BMW Group India, Australia and New Zealand, President Vikram Pawah told PTI.

He added that cars, especially luxury cars, are one of those items which people would love to reward themselves with after the crisis is over.

Stating that India is just reaching the stage of flattening the curve but has not flattened as yet, Pawah said,"I do expect that (pick up in car demand) to happen a little bit stronger once we flattened the curve. Every country would have that."

He further said,"Human behaviour is pretty similar. One is personal mobility and also what happens is that once you are buying now, you are really thinking that I want to have the latest technology, latest safety, latest emission technology that are available in the world. I think the luxury segment, specially BMW, has been providing world cars to India from day one."

When asked about the sustainability of the current car demand, Pawah said, "One thing clearly shaping up across the world is that people are coming back to individual mobility or personal mobility and avoiding shared mobility and that creates a pent-up demand. That has happened across the world. In India also we have seen that pent-up demand now showing up."

Slowly with the festive period, he said, "We are seeing that people are coming back to some level of engagement there. So we see improvements month-on-month, week-on-week. We expect that to continue."

On the outlook for 2020, Pawah said there is no doubt that 2020 would be subdued than 2019. "We have to look at it from that perspective that recovering a quarter's sales loss from the balance six months is not possible," he said.

While sales have improved quarter-on-quarter, he said, "At the moment we are sitting at 41.2 per cent decline for the year..." In 2019, BMW India sold 9,641 units, down 13.8 per cent as compared to 11,105 units in the previous year.

Commenting on the impact of COVID-19 on the company's new launch programme, Pawah said, "When such decline in sales happens it does impact the supply chain a little bit, in terms of introduction of some of the models. Yes, some of our model launches have been delayed to next year like the new 5 Series and the new 6 Series Gran Turismo, these two have been delayed to next year for the time being."

However, he added,"We will come back strong, it is only a matter of timing. It is not something that has gone away. It has not changed our strategy or our plan. It is just that we have to adjust the time depending on the supply chain situation that existed in the timeframe."

Last week, the company had launched its BMW 2 Series Gran Coupé model in India at introductory prices of Rs 39.3 lakh and Rs 41.4 lakh in diesel engine variant, looking to enter new segments of the luxury car market in the country as it prepares to spur demand.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp