This document summarizes information about BMW, Audi, and Mercedes-Benz operations in India. It discusses that BMW India is a subsidiary of the BMW group and established a production plant in Chennai in 2007. It also provides details about the models assembled/imported by each company in India, their prices, promotion strategies, and dealership networks. Furthermore, it mentions that Mercedes-Benz saw a 79% sales jump in January-July 2010 while BMW and Audi saw 35% and 56% growth respectively. Finally, it analyzes the luxury car market in India and outlook for future growth.

1. BY –, PREETI,VISHNU,
ASHISH ,PIKUMONI,SHIVANI
NIHARIKA AND SAURABH

2. Headquartered in Chennai , BMW India Private
Limited is a 100% subsidiary of the BMW.
 The initial investment in India is 1.1 billion
Indian Rupees.
 In medium term, BMW India Private Limited has
employed around 200 people; up to 600
additional jobs have been created in the dealer
and service network.
 On 29 March 2007, BMW India Private
Limited officially opened its production plant in
Chennai and has a capacity to produce 3,000
units per year.


3. 4ps of BMW
•Price – Value added pricing, pricing out of
some people’s price range. All products
priced between 30 lacs to 1.5 cr.
•Promotion – Product
placement, advertising at events that
reflect brand image of BMW.
•Place – internet (design your own car) and
car showrooms.

4. •Product – A luxury performance car, with
industry leading Efficient Dynamic
technology system.
•Assembled/Manufactured Locally
BMW 3 Series
BMW 5 Series
BMW X1

5. 
Imported
BMW 5 Series
BMW 5 Series GT
BMW 6 Series
BMW 7 Series
BMW X3
BMW X5
BMW X6
BMW X6 M
BMW M3
BMW M5
BMW M6
BMW Z4

6.  Audi
has been selling Luxury cars in India
since 2004.
 However the Audi India was established in
March 2007 as a division of Volkswagen Group
Sales India.
 Audi India uses Škoda Auto India Private
Limited manufacturing facilities
in Aurangabad, to assemble the Audi
A4 and Audi A6 models locally.
 Audi India currently has 13 dealerships in
10 states and 2 Union territories of India.

7.  Price-
32 lacs onwards to 2 crores.
 Place- showrooms in 12 cities around the
country in Delhi, gurgaon, pune, Chennai,
Ahmadabad, Chandigarh, Bangalore, Mumbai,
Calcutta and Kochi.
 Promo- The Audi has been promoted using a
viral internet video release entitled "The
Next Big Thing". The campaign stars Justin
Timberlake.
 Audi also sponsors racing events, golf events,
iifa awards and movie sponsorship(Teen
Patti).

8. Product- high end performance luxury cars.
Manufactured/Assembled Locally
 Audi A4 (1.8, 2.0, 3.2 V6 petrol and 2.0 TDI and
3.0 TDI diesel)
 Audi A6 (2.8, 3.0 petrol and 2.7 and 3.0 TDI
diesels)
 Audi Q5 (2.0 petrol and 3.0 diesel)
Imported
 Audi A8
 Audi TT (3.2 FSI V6 only)
 Audi R8
 Audi Q7 (3.0 and 4.2 diesels)


9.  Daimler
entered the Indian market and set
up Mercedes-Benz India Ltd in 1994.
 After DaimlerChrysler sold off most of its
equity interests in Chrysler in 2007, it
changed its name to Daimler AG.
 Mercedes-Benz India is a 100%-owned
subsidiary of Daimler AG. The company is
based in Pune.
 Mercedes has an investment of 700 million
euros in India.

10.  Price-
28 lacs to 1 crore
 Place- Mercedes-Benz India currently has 22
dealerships across 17 cities in 11 states and
2 Union Territories and Service Stations in 32
cites in 16 States and 2 Union Territories of
India.
 Promo- Mercedes has a tie up with Johnnie
Walker to promote the message of
responsible driving. Sponsorship of racing
events, auto expo.

11. 










ProductManufactured/Assembled Locally
Mercedes-Benz C-Class (Sedan only)
Mercedes-Benz E-Class (Sedan, Coupe, and Cabrio)
Imported
Mercedes-Benz CL-Class
Mercedes-Benz CLS-Class
Mercedes-Benz GL-Class
Mercedes-Benz M-Class
Mercedes-Benz S-Class
Mercedes-Benz SL-Class
Mercedes-Benz SLK-Class
Mercedes-Benz SLS AMG

12.  Mercedes-Benz
India reported a nearly twofold jump in its monthly sales at 321 units in
April, 2011.
The company had sold 178 units in the
corresponding month last year.
 BMW India has sold a record 753 cars in
October 2011. 'Last year they sold 4,721 cars,
whereas this year till October we have sold
3,500 cars. We hope to take the margin
between 5,000 to 6,000 cars by the end of
this year.

13.  Audi
India sold 1,658 vehicles in the year
2011 compared to 1,050 vehicles in 2010 and
registered an increase of 58% in sales growth
in 2011 as compared to 2010.
 MERCEDES Sold 7430 units last year,as against
5819 units in 2010
 BMW recorded 45% growth in india and is
expecting to increase in the year 2012

14. 
The battle between the Germans is getting serious in
India. BMW caught Mercedes Benz napping and went past
the three pointed star last year.

However, with the launch of the new E-class, C-class
Executive and the supercar SLS AMG, Mercedes Benz has
taken the lead over BMW and Audi in the first seven
months of 2010.

Mercedes sales jumped by a massive 79.31% while BMW
and Audi witnessed 35.35% and 56.5% respectively in the
period Jan-Jul 2010 compared to the same period last
year.

15. All three brands that is; BMW, Mercedes, and
Audi
 have a high level of awareness, both in
recognition and recall.
 The image of BMW , Mercedes and Audi is
favorable, strong and relevant.
 BMW ,Mercedes and Audi are mainly
associated with performance and style by
existing customers and status by potential
customers.

16.  These
companies target the luxury and
performance car segment in the auto sector.
 Other players in this segment other than the ones
mentioned are Porsche, Bentley, Jaguar, Land
Rover etc.

17.  The
profile of all the buyers for these three
companies is the same. They all target upper
middle class and high class customers.
 These companies have a big presence in the major
cities of India.
 They are looking to enter tier 2 & 3 cities in India.
Like Jaipur, Pune, Coimbatore, Goa, Ludhiana,
Lucknow, Bhubaneswar.

19.  BMW-
The luxury car brand targets younger
customers. Often self-driven, it lays thrust on
speed and emphasises on driving as pleasure.

(average age of a BMW buyer is 40 years)
 BMW
is growing its dealer network and hopes to
touch the 60 mark by 2015.

20.  A symbol
of power. The ultimate car for those who have
arrived and is almost always chauffeur driven.
 The
company is working on its model line-ups, marketing
and brand positioning to keep them aligned.

21.  The
car emphasises design and style rather than
speed (BMW's thrust). Positioned as a wellengineered stylish car, its tagline is 'Vorsprung
durch Technik' in German, meaning 'Lead by
Technology'.

22. Others
10
10%
BMW
36
36%
Mercedes-Benz
21
21%
Audi
33
33%
Mercedes-Benz
Audi
BMW
Others

23. •
The luxury car segment in India has been growing at a CAGR
of 30% , for the past decade. But this year the rate would not
be able to touch double digits. Rise in excise
duty, depreciation of rupee and the rising petrol prises, are
some of the factors driving consumers away.
•
Luxury cars, account for less than 2% of India's 2.2-million
car market, grew by just 9% in the first six months of 2012
with sales of around 12,000 units. In 2011 the premium
segment recorded sales of 23000 units. The industry had
expected a sale of 30000 units.
•
This year in the month of May, this segment recorded a
negative growth, the first time in the last seven years.
•

24.  Analysts
however expect the Indian luxury car
market to cross 50,000 units annually in the next
five years from now.
 The
basic attribution of this demand can be given
to the rising number of High Net worth Individuals
(HNI’s) in India. The HNI population in India stands
at 1.5 million.
 The
HNI index in India is growing at around 15% to
16% per year. Though after the stock market crisis a
good chunk of the HNI’s have been erased.

25. Many experts also feel that with increasing number of
BMW, Audi and Mercedes on the Indian roads, somewhere
the exclusivity factor associated with these brands say, 510 years ago, has gone down and hence, many consumers
who have the money – between Rs. 1 crore and Rs. 5 crore
– to spend and want exclusivity, are looking at brands like
Aston Martin, Ferrari and Lamborghini, to the desired
exclusivity they want out of the purchase.
•
India being home to around 4% of the worlds billionaires
the market for super premium segment looks bullish.
•
The Indian premium car market (experts opine) would
take another 3-4 years to mature and in the meanwhile the
real competition would be fought in the 30 lakh to 1 crore
segment
in India.
•

26. THANK YOU !!