FBMW set to drive in iconic MINI next year

BMW is firming up plans to launch its iconic British marque MINI in India next year. While the German car giant had earlier decided against getting the car to India, the growing appetite of Indians for luxury has prompted the company to change its plans.

Andreas Schaaf, head of BMW India, said the company would maintain the brand's separate identity. "The MINI is a strong brand in the BMW Group portfolio and we are confident of its success in India. We will retail the car through standalone MINI dealerships and not use the existing network of BMW," Schaaf told TOI.

BMW has been on a roll in the Indian market, especially after it edged past rival Mercedes to grab the luxury car market leadership position in 2009. The company is looking to cross the 10,000 mark in sales this year and its strong showing has prompted its headquarter in Germany to finally give the nod for MINI. Schaaf said the MINI is not expected to be a volume cruncher. "The idea is to make the brand available here." The car is likely to be priced around Rs 25 lakh, though the final price will be decied at the time of the launch.

MINI will compete with models like Fiat 500 and Volkswagen's Beetle. Fiat was the first one to tap the segment and drove in the 500, popularly known as the 'Cinquecento', in 2008. The car is priced around Rs 17 lakh. So far, it has sold 70 cars. But while Fiat has seen a lukewarm response, VW has tasted success with Beetle, which comes for a little over Rs 20 lakh. The Beetle has sold 620 units in India since its launch in December 2009.

"Volumes from this segment may be limited now, but the expectation is that they will grow. You cannot plan a product after the market booms. You have to plan well ahead in time," said Abdul Majeed, who tracks the auto sector at PricewaterhouseCoopers.

Like its competitors, the MINI will also be imported to India as a completely-built unit (CBU). BMW plans to have a limited retail presence and will likely to have two dealers in Delhi and Mumbai. The BMW group sold 1,461,166 units globally in 2010 among BMW, MINI and Rolls Royce. Of this, the MINI accounted for 234,175 units. Worldwide, MINI is available in the hatch, convertible, coupe, countryman and Clubman range. "BMW Group is presently evaluating which products from the MINI model range will be introduced in India," Schaaf said.