Luxpresso – 
Philipp von Sahr, president, BMW group India on setting a new precedent by adopting a no-discount strategy to deal with the price war in the Indian luxury car segment
Edited excerpts from the interview
The auto industry is witnessing a slowdown of sorts. How is BMW coping with this?
This year has not been an easy one for the automotive industry and that applies equally to BMW India. We decided to stand our ground in a fiercely competitive environment with new ideas and the strength to promote our new products. We were prepared to meet the challenges to ensure our company’s success. We were able to anticipate trends and that gave us an edge. Last year, BMW India witnessed an unprecedented price war from its competition for the market share of the Indian luxury car segment. We have made our price decisions with all due care and consideration. They will pay off in the long run. It will lead to a win-win situation— both, in terms of profitability and growth.
How do you feel about brands offering discounts to draw in customers? Is that something BMW will ever consider?
We want to increase our sales volume, but not at any price. We don’t want to be number one in discounts. Unlike our competition, we will not venture into the Indian luxury market with discounted cars. In January and August 2013, BMW India increased prices across its entire product portfolio. From January 1, 2014, BMW Group India will again increase prices by 7-10 per cent. As you are aware, others in the Indian luxury car segment have already started following us.
What is your take on the luxury automobile market in India and the challenges within it?
Luxury is a constantly evolving and subjective concept and is definitely not a new experience to India. Aland of royals, India has an extensive history and tradition of opulence and wealth. India is a country which is witnessing dynamic growth. Though the Indian luxury market is still at a nascent stage, it has immense potential with rising purchasing power and aspiration for luxury brands along with evolving lifestyles. Indian consumers strongly associate the brand with exclusively authentic luxury products, which are distinguished by their emotional appeal, uncompromising engineering, innovative technology and outstanding quality. We foresee an exuberant growth potential amongst the young achievers, predominantly from Tier I and II cities that have a dynamic attitude and are technologically savvy. Considering that India has a population of over one billion, there is more potential for growth. We are well positioned for the future with our strong product portfolio. Our approach is ‘Production follows the market’. In order to achieve growth, we will resolutely expand our product range and cover all opportunities in the luxury car segments which are relevant for us.
Which is the latest offering from BMW in India? What is the price range?
Recently, we launched the new BMW Z4, which is available in a new design scheme—the Design Pure Traction package, which transforms the classic sporting personality of the BMW Roadster and lends it even greater appeal and individuality. The new BMW Z4 is available in a petrol variant and the all India ex-showroom prices starts from Rs. 68,90,000 onwards.
Which car do you personally drive?
I drive a BMW 7 Series. It stands for inspiring luxury, thrilling driving dynamics, and overwhelming visual presence.
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