BMW to offer used cars in India – the “BMW Premium Selection” will include used BMW cars bought in India since its introduction in 2006.
As luxury car owners in India are likely to change their model every 5 years – 2011 will be the right time to offer the first BMW owners in India a chance to replace their car with a new model. At the same time this will open up a new segment which is not having the purchasing power for a brand new luxury car, but can shell out some Rs.20 lakh (32.000 Euro) for a used BMW, which will be checked by BMW engineers and comes with a warranty.
In the long run, BMW pre owned car sales in India should contribute up to 30% to their overall revenues in the country. BMW will start to offer the used cars by April this year in all major cities, starting with Chennai in the South of India and followed by Gurgaon in the North. BMW India President, Mr. Peter Kronschnable said “the new used car venture in India will add re-sell value for the BMW brands and make the entire business value and philosophy more transparent”.
During 2010 the new car segment of BMW should cross the 4,000 unit mark. Since car sales in Europe are stagnating or even declining, luxury car makers like BMW and Mercedes are focusing more on Asia, especially on China and India. BMW is also trying to find ways to increasing their revenue, be it by promoting their financial products (BWM financial services) or by offering their used BMW cars targeting a new section of customers. At the moment BMW is leading the luxury car segment just ahead of Mercedes, but who will take the bigger share in the long run?
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