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Old 12th May 2016, 15:40   #1
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Default BMW's Chennai plant hits the 50,000 mark

BMW India, the home-based arm of the German luxury car manufacturer, has rolled out it's 50,000th "Made in India' car from it's Chennai plant.

BMW's Chennai plant hits the 50,000 mark-50000bmwindiachennai.jpg

Dr Jochen Stallkamp, Managing Director, BMW Plant, Chennai, posed with the car, an all-new 7 Series, which was unveiled at the 2016 Auto Expo.

At present, the BMW 1 Series, the BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 7 Series, the BMW X1, the BMW X3 and the BMW X5 are all locally produced at BMW's Chennai plant, which sees localisation levels upto 50%.

Speaking on the occasion, Dr Stallkamp said:

Quote:
"It is with great pride that we are rolling-out the 50,000th car locally produced at BMW Plant Chennai. Each and every BMW that is locally produced is of the same international standards as anywhere else in the world and brings a smile on the faces of our customers. Highly skilled employees, advanced manufacturing processes along with state-of-the-art machinery and technology provide all the necessary ingredients to achieve these tough standards. We are proud of this achievement and look forward to many such milestones in the future."
ET
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Old 13th May 2016, 13:58   #2
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Default Re: BMW's Chennai plant hits the 50,000 mark

And Mercedes sold 1/3rd of that number in 2015 alone! If I was BMW, I'd certainly not be bragging about numbers. They can't afford to, not after losing market share and being outsold 2:1 by chief competitor, Mercedes.

Work hard, BMW. Leave the celebrations for later. You have been in a downward spiral for the last 3 years. I hope the new bossman, renewed focus on petrols etc. brings BMW back to the 10k / year level. For now, BMW is looking like an awfully disoriented organisation that is completely out of touch with market realities.
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Old 13th May 2016, 14:15   #3
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Default Re: BMW's Chennai plant hits the 50,000 mark

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50,000th car locally produced at BMW Plant Chennai
The more i read this the more i feel like BMW robbing indians big time. If they are locally produced(over 50% localization) why would they cost twice compared to cost around the world.

Good they have buyers but it would only make sense to pass on these statements as actual benefits to local buyers.

My only request is to pass on the benefits and start pricing the cars much closer to what they are sold outside India.
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Old 13th May 2016, 21:38   #4
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Default Re: BMW's Chennai plant hits the 50,000 mark

most MNC car manufacturers in developing countries act like robber barons. Case in point Toyota pricing, BMW pricing ... basically everyone except Suzuki, Fiat, maybe VW etc.
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Old 14th May 2016, 10:32   #5
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Default Re: BMW's Chennai plant hits the 50,000 mark

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The more i read this the more i feel like BMW robbing Indians big time.
No, on the contrary, they are losing money , they have lost a considerable amount year on year from the time they have set up operations in India, their HO is supporting them in anticipation of higher and profitable business in future.

Quote:
why would they cost twice compared to cost around the world.
If you check prices with comparable countries where taxes are high like UK & Australia, you will find these prices to be around same especially for CKD models. We have some of highest taxes on Automobiles. Do factor 30 % Excise , CST - 2 % , VAT 13-15 % , Entry / Octroi Plus Registration expenses which can vary from 8-20 %

Of course, we are amongst cheapest countries when it comes to hatchbacks / saloon which are mostly manufactured with localised parts and it will take some time before complete benefits of localisation are passed in the higher segment where I believe local production is more of assembly rather than actual component level production.

Last edited by Turbanator : 14th May 2016 at 10:34.
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Old 14th May 2016, 15:09   #6
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Default Re: BMW's Chennai plant hits the 50,000 mark

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Originally Posted by Turbanator View Post
If you check prices with comparable countries where taxes are high like UK & Australia, you will find these prices to be around same especially for CKD models.
No way! On BMW's website, I just built a 520d luxury line in the UK and the price was GBP 37,000 with insurance. That's like 35 lakhs. I don't know how the UK works, but am pretty sure there is room for dealer discounts on a sedan that's been around for 6 years.

Cars - especially luxury cars - in India are grossly overpriced. There's no two sides to that. A3 for 30+ lakhs, Fortuner AT 4x4 for 34, Camry for 40 and the Mercedes C-Class for 40+. It's ridiculous.

My solution = buy pre-worshipped .
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Old 14th May 2016, 17:18   #7
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Default Re: BMW's Chennai plant hits the 50,000 mark

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On BMW's website, I just built a 520d luxury line in the UK and the price was GBP 37,000 with insurance.
GTO, On the contrary, I find prices for 5 series in the UK to be higher than Ex-showroom prices in India and remember UK has only 20 % VAT as against about 45 % taxes in India.

Starting price for 520-D Auto at BMW UK site is indeed 37000 but this will be essentially a basic car , by the time we add similar loadings like Indian edition it will be far higher more than 45000 - I have built one for you PDF attached , everything costs extra like LED , Sunroof , Navigation , Better entertainment,sunblinds .

Of course, this varies from the model and surprisingly 7 series with close or higher than Indian spec is far cheaper in the UK , probably this has to do with demand as well . Most cars here will be self-driven. Discounts typically range between 4-6 % plus manufacturers incentives which should come on 5 series now.

I can safely say many of the BMW CKD cars are quite competitively priced & compare will with global prices if factor taxes , just that we need to match spec as Indian customers in this segment wants everything, in German's parlance - Christmas's tree
Attached Thumbnails
BMW's Chennai plant hits the 50,000 mark-screen-shot-20160514-4.52.30-pm.png  

Attached Files
File Type: pdf 5 Series Luxury India.pdf (237.4 KB, 104 views)
File Type: pdf Build your own.pdf (1.34 MB, 114 views)

Last edited by Turbanator : 14th May 2016 at 17:22.
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Old 16th May 2016, 11:12   #8
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Default Re: BMW's Chennai plant hits the 50,000 mark

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Originally Posted by Turbanator View Post
GTO, On the contrary, I find prices for 5 series in the UK to be higher than Ex-showroom prices in India and remember UK has only 20 % VAT as against about 45 % taxes in India.

Starting price for 520-D Auto at BMW UK site is indeed 37000 but this will be essentially a basic car , by the time we add similar loadings like Indian edition it will be far higher more than 45000 - I have built one for you PDF attached , everything costs extra like LED , Sunroof , Navigation , Better entertainment,sunblinds .
As per the PDF, the price works out to 46K pounds, which is approximately 45L rupees. 5 series starts in India at 50L rupees ex-showroom, so how is the UK price higher than India?
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Old 16th May 2016, 11:54   #9
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Default Re: BMW's Chennai plant hits the 50,000 mark

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As per the PDF, the price works out to 46K pounds, which is approximately 45L rupees. 5 series starts in India at 50L rupees ex-showroom, so how is the UK price higher than India?
don't go too much on the rupee to pound conversion , they have priced most of the products quite competitively is what I wanted to convey. Do remember we have about 25% higher taxes than the UK on ex-showroom prices and also the size of our market is still small which means - higher overheads.
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Old 16th May 2016, 15:00   #10
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Default Re: BMW's Chennai plant hits the 50,000 mark

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Originally Posted by Turbanator View Post
don't go too much on the rupee to pound conversion , they have priced most of the products quite competitively is what I wanted to convey. Do remember we have about 25% higher taxes than the UK on ex-showroom prices and also the size of our market is still small which means - higher overheads.
Directly comparing retail prices isn't the correct way IMHO. I seriously doubt that BMW (or Audi/Merc) is losing money on every car they sell.
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Old 16th May 2016, 15:08   #11
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Default Re: BMW's Chennai plant hits the 50,000 mark

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Directly comparing retail prices isn't the correct way IMHO. I seriously doubt that BMW (or Audi/Merc) is losing money on every car they sell
Of course not , they do earn on many cars , I strongly believe most manufacturers including Japanese price their products based on market competition / demand / paying capacity / Localisation and Taxes .

But it will be unfair to single out them for charging too much in my opinion. Look at Toyota, having clocked over 15000 bookings in about 10 days of launch they are still complaining about Diesel Ban and suggesting that future investments from Japan can be limited as if they are already selling their best / complete range

On the other hand BMW has quietly imported 3 & 5 series Petrol from Germany and what I understand they will lose 5-8 Lac on each car they sell here - why ? probably because they are very serious about this market .

something from recent news :
Toyota Motor’s confidence in India has taken a big knock after the Supreme Court ban since mid-December last on the sale of high-end diesel cars and SUVs, and the continuing uncertainty… is only adding to it. - See more at: http://indianexpress.com/article/bus....4uWSWaN0.dpuf

Last edited by Turbanator : 16th May 2016 at 15:16.
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