Thursday, October 18, 2007

India, the world’s 2nd fastest growing car market, was supposed to be a seller’s paradise; ironically, this insight’s on

Or for the A Model Posing with BMWfact that BMW is ensuring that the envisaged dealer network within India (8 dealers currently, 9 more to be added by year end) is at par with any of BMW’s international undertakings? Haven’t competitors already taken that tactical edge?

Peter does fight back. “I don’t think the competition has an edge over us, because as far as our competitors are concerned, only Mercedes Benz is present with a manufacturing plant; Audi has barely started its marketing here in India!” he says. BMW has invested $26 million for its assembling operations. So then is the BMW strategy focused not on sales but just on earning profits, however small? That too especially on the back of its Chennai plant (with an annual objective of assembling 1,700 cars), expected to allow BMW to escape the prohibitive 60% import duty on imported cars?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative