[Hayek]

Unless the A and B class, and the A3 sell big in small towns, Mercedes and Audi have outclassed BMW in the core segments and not through these lower end products. I am not surprised - three years back, everyone was buying BMWs. But all the new cars in my office and apartment blocks are either Mercs or Audis. Why? Maybe because the 520 D looks dated compared to the brand new A6 and the face lifted E, and the 320D is too unrefined compared to its peers. Or people are just bored of seeing too many cut price Corporate edition Beemers on the road. Anyway, BMW clearly needs to do something different to fight back.

[zulfi hansi]

Ironically the present 3 series was the topper when it was launched yet it couldn't sell, the earlier one was full of flaws yet it sold big time, everyone was buy it then and the CE just flooded the market. There is only one logic here, the novelty factor, which now is gone. BMW became too common place and now nobody wants to buy it. The present 5 series on the other hand sold in respectable numbers when launched but unfortunately the 3 did not.

[stanjohn123]

It's pretty obvious why BMW is lagging behind and it will continue to do so.

1) Horrendous A.S.S
2) Lack of exclusivity , too many of them on the roads due to CE's.
3) RFT tyre horror stories are still on peoples minds (although now their cars come with space savers).
4) Super expensive to maintain without BSI.

[nakul0888]

I can't understand why everybody is hating on the corporate edition models. IMHO they are a sweet deal.
Take the 3 series as an example. If bmw offers a cut price CE 3 series model with jetta levels of equipment at around 10-12 lakhs less than the top end 3 series model, what is wrong with it ? The core mechanicals of the car is still the same. Its got the same engine, same transmission, same everything underneath. The only thing missing is some gizmos. I couldn't care less if there is no I drive or massaging seats. The way I see it I am saving a lot of money on buying a fantastic driver's car by leaving out stuff that I don't care about very much. I would rather spend the extra cash on BSI and invest the rest. And I am pretty sure there are lots of people who would think on the same line. I sincerely hope Merc, Bmw and Audi continue offering CE models and offer a choice for wider variety of people. You know sometimes less is more.

[CR-V]

Interesting, was discussing it with family the other day that we do see mercedes and audi more on the roads that bmw. This proves it!

Though as a bmw owner one side of me likes the fact that my car is more exclusive, though sure there are negatives about it not selling as many numbers as well.

Edit:
Read a few more comments below, so there is a argument that BMW sold quite a lot because of the CE edition so thats why they are not selling anymore? Anyone has sales figure to compare with previous years as well?

[rajeev k]

Drop in BMW sales could be attributable to several factors, mainly;
Audi has captured lot of space in this turf and Mercedes has regained lost ground.
Dealers like Platino Classic of Kochi are also responsible due to their misdeeds to some extent, thereby ruining BMW's image.
Some probable BMW lower end customers would have scaled a notch lower buying Corollas & Fortuners.

[azeemhafiz]

So, here is the bit of interesting news which shows how the international market and challenges are so much more different than ours.

BMW has been named the top luxury car maker in the world for 10 years in a row.

http://www.theguardian.com/business/...nsecutive-year

[stanjohn123]

Originally Posted by nakul0888

I can't understand why everybody is hating on the corporate edition models. IMHO they are a sweet deal.

Luxury car owners pay huge premiums for its exclusivity and brands customer service than for the car itself. So when corporate editions come out , it goes totally against this principle and probably the reason for their poor after sales service which is due to the huge numbers they sell.

[rajeev k]

Originally Posted by azeemhafiz

So, here is the bit of interesting news which shows how the international market and challenges are so much more different than ours.
BMW has been named the top luxury car maker in the world for 10 years in a row.

Indians have a great fascination for the three pointed star. Perhaps, this started from the old Tata-Mercedes-Benz days.
Audi was an unknown proposition in our country, till Ravi Sasthri won the champion of Champions trophy, Down Under and the Audi 200 that came along with it.

[zulfi hansi]

Originally Posted by rajeev k

Indians have a great fascination for the three pointed star. Perhaps, this started from the old Tata-Mercedes-Benz days.

It actually dates back to much earlier years, starting from the Maharajas but did not really take off in a big way until the Gulf boom when hoards of Mercs were shipped to India from the Gulf returnees under permanent return law and under lot of dubious ways. All these were LHD cars. Then Mumbai was the hub of this market. I remember a far relative bought one in the 80s from Gulf under permanent return law by investing all his savings on the car and sold it for 3 times the price, but only after he had enjoyed its possession for a few months, he was a auto fanatic.

I was a kid then and when ever my parents visited Bombay, and were shopping around Fort area, my jaw would always be in dropped position and I would be in my own world never wanting to leave that area. My fascination started then and I did not know what that fixation of a 3 point star means, just loved to look at it endlessly, naturally it translated over the years and I bought one last year, now I am a peace after so many years. That is what a MB is for me, and many others too.

Though I don't relate my personality to an E Class, gifted it to my Dad, my time will come after a few years.

And there is another fixation story of my younger years, much recent, the BMW 530d, now that is on my target, I certainly do not go by the market.

[nakul0888]

Originally Posted by stanjohn123

Luxury car owners pay huge premiums for its exclusivity and brands customer service than for the car itself. So when corporate editions come out , it goes totally against this principle and probably the reason for their poor after sales service which is due to the huge numbers they sell.

Well Lexus sells tons of cars , as much as the Germans in some markets, none of their customers are being ripped off nor none of their cars go kaput. They don't seem to have any trouble with A.S.S despite huge volumes. So I am guessing this is more of an ethics and business policy issue rather than volume.

Beside at the end of the day cars like 3/5 series, a6 , e class and all are not thaaaaaaaaaat special to warrant limited production and limited variants to cater to some section of buyers. That scenario is best reserved for those cars that probably runs on 12 cylinders and glutton on petrol rather than those that run on puny 3.0 diesels. Sorry if I offend any big three owners here especially as this is from a guy who has a long way to go before even reaching that level.

So IMHO bashing on CE edition models seems a bit too far fetched a reason for declining sales/popularity. There must be something else that's wrong here with BMW.

[microaubin]

Let me put it this way about how I feel.. A prospective entry level luxury car customer is no way super rich and he is just treading the waters here. So every penny matters to him and he evaluates all the potential cars. Here is what I feel why potential customers are veering less towards BMW.

1. BMW's are too sporty to drive. Most owners especially in Tier 2 and Tier 3 cities are self driven and above 35 to 40 years in age and don't like too much sporty. Hence advantage Mercedes( Luxury ) and Audi( Sporty Luxury).

2. RFT's, Space saver and our broken roads. RFT's and our broken roads do not gel very well with ride comfort taking a beating. Lack of a spare tyre was a major downer and most people are still not aware there is a space saver available now.

3. Rear Wheel Drive and Family. Believe it or not, while Rear Wheel drive is an enthusiasts dream, elderly and female members in the family do not take kindly to being pushed from behind after being pulled from the front all these years.

4.Dealers and Discounts. Dealer reputation of BMW has been taken a beating lately. Neither are the sales person very knowledgeable. Also Discounts are not consistent. Huge difference in discounts offered to different customers during the same period. In smaller cities most of the prospective customers in fact know each other.

5. Exclusivity factor Myth. With the economy opening up, in fact none of the big three can be now considered exclusive. A Renault Fluence is more rarer than any of the big three.

6.Service plans and extended warranty. While BSI's are popular, they are also costly. Audi and Mercedes have started offering them at a reasonable cost.

Hence when a prospective entry luxury car customer, compares all three and evaluates BMW is lacking in many areas.

[drmohitg]

In my opinion the reasons for the downfall are majorly dependent on the looks and feeling of something new. Earlier it was only Mercedes and it was seen as the epitome of luxury and ruled the sales charts too. Then came BMW and people started eyeing it as the next big thing in town specially due to the exclusivity. Those die for corona eyes or angel eyes starting ruling people's mind. This was then followed by Audi with its great looking cars and those fabulous DRLs and people then starting standing in a queue for there next Audi. Meanwhile after few years of having lost there top position, Mercedes is now coming back strongly with its new design philosophy and they have launched some great looking cars with looks very different from its previous generation. This is where BMW has lost the plot now as in the looks department it has hardly made any significant changes and still looks the good old BMW that people associate the brand with.

But since the majority of the sales come from entry level segments where I feel most are first time buyers upgrading from lower segments, the overall looks and feel of the car matter the most. BMW with its kind of old looks now and not so great interiors ( again looks wise) is no longer posing a serious competition as it has lost that awe factor. Other parameters are there too like handling, lack of spare etc but IMO this is the biggest parameter specially if I see around in my circle of family and friends where these cars are bought more in line with "I want it" rather than "I need it". And the want quotient of BMW is falling year by year.

[Turbanator]

Some News from BMW finally

BMW hikes localisation level, plans 15 launches this year

http://economictimes.indiatimes.com/...w/46111047.cms

[RakishRam]

When asked if this would mean price benefit to consumers immediately, he replied in the negative but said indirectly they would benefit as localisation would help shield the company's products from price increases due to currency fluctuation or inflation.

I was always waiting for BMW to fight back, but it seems they arent "officially" going to transfer the benefits of localization to customers - of course, we might see more discounts.

And the launches planned are more of high end cars, not the big number ones.