[AdiSinghV12]

Few weeks back when the price hike for the month of January was announced I was told by a BMW executive that they are aware that the numbers are going down but according to their team, they want to create a more premium image than be in the 'rat race'. But with the difference being as big as 2000 cars I surely think they need to work on their strategy.

[a4anurag]

Originally Posted by AdiSinghV12

Few weeks back when the price hike for the month of January was announced I was told by a BMW executive that they are aware that the numbers are going down but according to their team, they want to create a more premium image than be in the 'rat race'. But with the difference being as big as 2000 cars I surely think they need to work on their strategy.

This reaction is like 'Ok, we are doomed. Now what?!'

This kind of reply is just not acceptable and feels like we are lost and can't fight any more. Let the other two contenders fight for themselves.

A difference of 100-200 cars is understandable but 2K seems too high to be peaceful.

Anurag.

[drmohitg]

Actually I am not sure what exactly is BMW's strategy currently. They don't seem to be too interested in catching up the other two which is evidence by the fact that the recent price hike in January was much more higher for BMW than for the other two. Thus making it even more difficult for them to play the catch up game. BMW increased prices by a cool 8-10% whereas the hike in Audi and Mercedes case was around 2-3%. Possible reason that I can think of is that in the last couple of years BMW really focused on putting the maximum number of cars out there on the roads and to ensure that priced there products ( X1 and 3 series) at a very competitive price. Now that they have managed to do that, they are slowly trying to increase there profit margins back to desirable levels and probably hope that people have started identifying with its strong points and would vote for it with there pocket.

[Shome]

Originally Posted by drmohitg

Actually I am not sure what exactly is BMW's strategy currently. They don't seem to be too interested in catching up the other two which is evidence by the fact that the recent price hike in January was much more higher for BMW than for the other two. Thus making it even more difficult for them to play the catch up game. BMW increased prices by a cool 8-10% whereas the hike in Audi and Mercedes case was around 2-3%. Possible reason that I can think of is that in the last couple of years BMW really focused on putting the maximum number of cars out there on the roads and to ensure that priced there products ( X1 and 3 series) at a very competitive price. Now that they have managed to do that, they are slowly trying to increase there profit margins back to desirable levels and probably hope that people have started identifying with its strong points and would vote for it with there pocket.

Hike prices by 8-10% and then give higher discounts, thats the game plan for now it seems. I know of X3s going at 38 lacs OTR and 3 series being offered with huge discounts as well. Majority of the Indians love the discount amount to be big...irrespective of the final price that they pay.

[Bluebeem]

I got a similar reaction from the SA when I asked about the hellishly high price of the new 520d.

I was told "sir now BMWs are in a separate league competing with jaguar and the likes. We're no longer competing with merc and Audi "

He added rather proudly "And the price is increasing by 4 lacs on 1st January. Right now the 520d is a cheap car at 47 lacs"


I think BMW make great cars, at the moment their models are better than Audi or Merc counterparts in many categories. But their pricing has gone all haywire. I've always maintained that the 520d has led BMW's success story in india thanks to 520d's positioning and sharp pricing.

Why would I pay 51 lacs for a car which till a few months back was available for 36 lacs at many showrooms across the country.

Moreover 51 lacs provides absolutely no value for a 520d

Similarly the 320d is now 38.1 lacs ex showroom in Punjab. That is moronically high !

[deetjohn]

Not a very surprising news is it? The new 3er has really not set the charts on fire at least here in KL. The numbers are quite few on road.

Most new ones that I see are Mercs and for good reason. And I think Stuttgart is going to come down heavily on the other 2 in 2014. The new C, the CLA, the GLA all look very tasty!

[9thsphinx]

It all boils down to how aggressive you choose to be in this competitive market. Audi is the most aggressive, hence it takes the pole position. BMW, the once king, is clearly taking things for granted. The numbers are the judge and show that BMW because of its attitude has now taken a back seat.

Bring in new products, fresh discounts, smarter marketing and price your cars very realistically - that's only how BMW may be able to climb back to the top spot.

[ajmat]

Originally Posted by AdiSinghV12

Few weeks back when the price hike for the month of January was announced I was told by a BMW executive that they are aware that the numbers are going down but according to their team, they want to create a more premium image than be in the 'rat race'. But with the difference being as big as 2000 cars I surely think they need to work on their strategy.

They started the rat race by discounting and easy fiance packages

Originally Posted by drmohitg

Actually I am not sure what exactly is BMW's strategy currently. They don't seem to be too interested in catching up the other two which is evidence by the fact that the recent price hike in January was much more higher for BMW than for the other two. Thus making it even more difficult for them to play the catch up game. BMW increased prices by a cool 8-10% whereas the hike in Audi and Mercedes case was around 2-3%. P.

The issue is localisation - BMW only assembles the cars together from kits. Merc assembles the engine and actually paints the car. Audi is somewhere in between

Originally Posted by Shome

Hike prices by 8-10% and then give higher discounts, thats the game plan for now it seems. I know of X3s going at 38 lacs OTR and 3 series being offered with huge discounts as well. Majority of the Indians love the discount amount to be big...irrespective of the final price that they pay.

BMW must be bleeding. Being the smaller company globally, they cannot afford to maintain narrow margins

Another aspect is although wonderful that the cars are - the new models are not radically advanced to the preceding model in my humble opinion.

The difference between the 3, 5 and 7 is like the different sizes of the same sausage, you got to look hard to distinguish!

[IshaanIan]

Originally Posted by AdiSinghV12

Few weeks back when the price hike for the month of January was announced I was told by a BMW executive that they are aware that the numbers are going down but according to their team, they want to create a more premium image than be in the 'rat race'. But with the difference being as big as 2000 cars I surely think they need to work on their strategy.

Originally Posted by Bluebeem

I got a similar reaction from the SA when I asked about the hellishly high price of the new 520d.

I was told "sir now BMWs are in a separate league competing with jaguar and the likes. We're no longer competing with merc and Audi "

He added rather proudly "And the price is increasing by 4 lacs on 1st January. Right now the 520d is a cheap car at 47 lacs"

Hahaha! That is the stupidest excuse I've heard! If they believe they are projecting a more "premium image", then why do their cars not have adaptive suspension settings to improve ride quality or comparable levels of kit/features? Also everyone knows that the Brits are trying to catch up to the level of the Krauts so infact if they say they are now competing with Jaguar, they have certainly slipped down a notch.

I don't know if it is only been my experience but usually the sales team in Mercedes, Volvo and to an extent even Audi, seem to be more informed and never make such silly statements.

[Shome]

Yes!!! the SA is correct BMW IS competing with Jaguar. BMW is at 3rd and Jag at 4th but catching up real quick. Audi and Merc are at a league of their own right now and with the new launches for both, the future looks only brighter.

BMW is a very good vehicle but the looks and the pricing is something that they have to work on. Also, at a certain level, I feel Audi and Merck are speaking the same language while selling while BMW is not. Its a tough road ahead for the next 2 years unless they come up with something radical.

[9thsphinx]

So it's not just India where BMW is trailing behind Mercedes and Audi.

Apparently, in Singapore MB overtook BMW to become the country's top make, with the E-class being the most popular.

http://www.reuters.com/article/2014/...0KQ07520140116

[srishiva]

They have stuck to the same design for years now. There is no freshness in their cars either on the exterior or interior and doesn't have the presence of either Audi or the premiuness of Merc. Add to that the pricing and it doesnt make people buy their cars.

[sandeep108]

Originally Posted by a4anurag

Who said cars from the Audi are not fun to drive? I'm comparing them outright with the BMW but they are not bad either.

Just that the cars from Audi look neutral and sober rather than sporty appeal as the BMW's have in them.

Anurag.

Of course Audi makes some very good to drive cars. But compare the normal A4 2.0 vs 320d? Till recently they were giving a very poorly tuned 140 bhp engine and extremely lethargic gearbox. or A6 2.0 vs 520d. In spite of the suspension, etc. the 520d is still very great to drive.

But see the problem is that BMW has not realised that Indian customers want status first, bling second, cheap cars third. Technology and driveabilty be damned since anyway the owner is rarely going to drive it. That is why they need to introduce the 318d with better interiors or 320i with better interiors. I even saw a 520i at a showroom. 5 series should come standard with adaptive suspension for our poor roads. The RFT issue is also a costly maintenance hassle. And BMW marketing is still poor.

So even though Audi A4, A6 and Q3 are globally known as pimped up Jetta, Passat and Yeti, still they are selling a lot more. No offence to any Audi owners, there are several differences. But marketing and status at decent VFM convinces the Indian customer everytime.

I feel it is actually Mercedes who may dominate 2014 and 15.

[ambivalent_98]

Originally Posted by pgsagar

Too many BMWs, Audis, Mercs on Indian roads. They lost that exlusivity. Would love to see British brigade take over German trio, for a change. Jag/Rover/Aston/Bentley/RR anyone?

Just a couple of days ago I read that the Brit Brigade was notorious of reliability. Is it true ? Then to do over the Germans might be difficult as Germans are fairly reliable. Nowhere as compared to the Japs but then they are still better I guess. This might be slightly

[vb-saan]

Originally Posted by deetjohn

Not a very surprising news is it? The new 3er has really not set the charts on fire at least here in KL. The numbers are quite few on road.
Most new ones that I see are Mercs and for good reason. And I think Stuttgart is going to come down heavily on the other 2 in 2014.

I think the BMW dealership being in the news (for wrong reasons) also could be a contributing factor.

On a side note, I see that Mercedes is into some serious brand building via Malayalam movies. Quite a few of the TD cars (especially the SUVs) are quite frequently seen in those New Generation movies

Originally Posted by 9thsphinx

So it's not just India where BMW is trailing behind Mercedes and Audi.
Apparently, in Singapore MB overtook BMW to become the country's top make, with the E-class being the most popular.

Yes, not so long ago, BMW used to top the monthly sales figures here (even above the mass market Japanese brands), and every second car on the road used to be a 3-series. But offlate they’re losing numbers, and Mercedes is steadily heading back into the game. I see lots of new A/B Class and CLA on the road now.