Source: Economic Times
German luxury carmaker BMW is expecting slower demand in the Indian automotive market amid uncertain economic conditions, a senior executive said. The company, which had witnessed a 45% sales growth in India last year, is expecting a moderate 20% increase this year.
"The Indian market is on the downside and going through a fragile economic environment . This is the most difficult year we have experienced so far. The hike in excise and import duty and petrol prices at regular intervals have impacted consumer sentiments as demand has been softening over the past few months," BWM Group India President Andreas Schaaf told reporters on the launch of its iconic MINI car in Delhi on Wednesday.
BMW had sold 3,707 cars in 2012, but the lowest 626 units were sold in May. The company said the government proposal to hike excise duty on diesel cars will further impact demand.
"More than 85% of our sales comprises of diesel variants. The change in the policy to tax these vehicles will distort the market and will disincentivise personal vehicle owners to go for new buys," Schaff added.
The company launched a new dealership for its iconic car MINI in Delhi. It has sold over 50 units of the Mini range comprising of Mini Cooper, Countryman and Convertible models since the debut of the car in Auto Expo. The luxury small car is available at prices ranging between Rs 25.5 lakh and Rs 35.9 lakh (ex-showroom Delhi ) for its three variants.