BMW to race ahead of Daimler India

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Dinglofing (near Munich): The world's largest premium carmaker, BMW, wants to race ahead of arch rival Daimler Chrysler.

Daimler Chrysler India sells 2,000 cars every year after being in India for 10 years. BMW wants to go beyond that in six years and is hatching big plans for India.

Last year, the company sold just 200 cars in India, all of which were imported.

Now, BMW will drive in with more and by 2010, it sees the car market doubling.

Says BMW AG board member, Michael Ganal, "We are prepared to grow alongside the volume in the market and localise more and more. Clearly we have to grow accordingly as a supplier industry."

So, by 2012 BMW might sell 3,500 premium cars a year.

Says President BMW, India, Peter Kronschnabl, "In a competitive environment we are targetting about 30 per cent of the segment. We feel that by about 2012 or 2015 we should double and come upto 10,000 units."

The three and five series cars will lead BMW India's offensive. They will provide volumes in segments where the Mercedes made its impression. Since then the market has developed steadily.

BMW's premium small car, Mini, might join in by 2009.

However, the group's going beyond cars. It's €4 billion financial services arm will also open its doors in India in partnership with an Indian bank.

And now BMW is looking for Indian suppliers to feed its global subsidiaries.

"We are new in the market so please give us a little more time on that. But I am sure that from now on - maybe in about 12 months we will definitely have selected certain services and implement them effectively on a worldwide basis. ," says Kronschnabl.

But its first task is to compete with Daimler Chrysler. And BMW's Dingolfing plant is gearing up to support its battle in India.

270,000 cars or almost a fifth of BMW Group's annual global sales come from the Dingolfing plant.

In fact, BMW's next assembly plant in India will also benefit from the Dingolfing plant as the five series kits will be exported from there.