BMW 1-Series hatchback's India launch on September 3rd, 2013

BMW India will launch the 1-Series hatchback, anticipated to be its least priced car in the Indian car market, on the 3rd of September, 2013. The 1-Series hatchback that will be sold in India will get both petrol and diesel power. Both engines will feature turbocharging, a-la-Mercedes Benz A-Class, which incidentally will be the 1-Series's chief rival.

Rumours suggest that the BMW 1-Series hatchback will be launched with a 2 liter turbo diesel engine, de-tuned to output 143 Bhp-320 Nm, and a 1.6 liter turbo petrol engine that will pump out 136 Bhp-220 Nm. These engines, albeit in different states of tune, are used in the likes of the BMW X1, the 3-Series, the 5-Series, the X3 and the Mini range of sporty hatchbacks. So, attractive cost savings could accrue for BMW India.

An 8 speed automatic transmission will handle torque handling duties to the rear wheels of the car. Notably, the 1-Series is rear wheel driven and the expectations surrounding the car, with regard to the handling department, are quite high. The BMW 1-Series will be assembled in India, at the German luxury car maker's Chennai assembly facility.

A price tag close to the 20 lakh rupee mark is likely for this car. A market leader in the global luxury car market, BMW has been facing increasing pressure in India, from the likes of Audi and Mercedes Benz. Audi and Mercedes Benz have overtaken BMW India in terms of sales numbers for the first quarter of this year.

Therefore, BMW would need big volumes in the second half of the year, to make up for the lower numbers and regain its numero uno position in the Indian car market. The 1-Series is one such big volume luxury car aimed at younger car buyers who want a luxurious and high performance car at a price tag that's relatively affordable.

The launch of the 1-Series hatchback will intensify the trend of entry-level luxury cars being launched in India. While Mercedes Benz has pioneered this segment in India with the likes of the A-Class and B-Class hatchbacks, the BMW 1-Series is expected to bring variety to this segment. Audi India, however, will enter this segment only in 2014, when it plans to launch the MQB platform based A3 sedan.

Until then though, Audi plans to keep the volumes ticking by offering luxury car buyers a cut price version of the Q3. Dubbed the Q3 Sport, Audi's luxury crossover could be priced at 25 lakh rupees. At this price, the Q3 Sport will be positioned as an alternative to the latest crop of hatchbacks in the Indian luxury car market. Click here to read more about the Audi Q3 Sport.