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Let’s Motor - In India.

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Mini After months of contemplation, BMW has decided that it will launch its small car MINI Cooper in India in 2009. This will be in addition to its plans of producing the 3 and 5 series in its plant in Chennai.

The Chairman of the Board of Management also hinted that BMW’s production facilities in India might be the source of MINI’s world wide, in the near future.

So how good of a plan is this?

The India consumer base is currently made up of large number of young professionals who have the resources to dish out the money. This set of people are also ardent motor racing fans who seek car’s that can handle well. Given the “Go-Kart” on rocket engines feeling the MINI gives, it will be well received in India.

The success entirely will depend on the pricing. BMW should plan on having a stripped down version of the MINI to compete with the established players like Suzuki and Mercedes Benz. BMW should also stay away from trying to introduce the topless version for a few years in India, given the weather, pollution and the Indian mentality. India has never been a friend to coupe’s. This might not be a big problem for MINI, but time will be the judge. Having personally driven most of its competitors in India, I can vouch for the better handling and performance of the MINI. Besides, none of the small cars have the kind of performance, image or following like the MINI does in the rest of the world.

Let us keep our fingers crossed and hope that BMW does not do a F650 again.

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Discussion

14 comments for “Let’s Motor - In India.”

  1. 1: Ashoe | May 14, 2007, 3:50 pm | Direct Link

    Coupes (2 door, but two rows of seats) Convertibles (topless, and ALSO frequently coupes)

    ALL Minis are Coupes, while some Convertibels are sedans (4-door Chrysler Sebrings, Audi A4 …)

    Their stripped down version Made For India will need to be a huge step-down to compete on price - most Indian, equivalent-sized Suzuki/Daewoo/Hyundai offerings have a 30-50 hp engine, while the US-Euro-spec base (non-S) mini has a 110-ish HP engine! The S is 150-ish HP!

  2. 2: Karthik | May 14, 2007, 3:57 pm | Direct Link

    Ashoe:
    There are almost no new 4 door convertibles built. The safety requirements regulate the stiffness of the body and hence…

    I know that ALL MINI’s are coupes. The point I was trying to make was that given MINI’s other characteristics the fact that it is a two door car might not be a big problem.

    And besides the engine, there are other things that they can strip down. If the MINI can compete in Europe with the same exact cars, I think they can compete in India too. They just need to remember that India’s have a little lesser money than their European counterparts.

  3. 3: Santosh | May 14, 2007, 4:13 pm | Direct Link

    The safety requirements regulate the stiffness of the body and hence …..

    Correct me if I’m wrong but I’m sure India does not have the same safety standards for building a car as some western nations … not yet at least. Also it’s much easier to get a car modified in India without govt restrictions. I could technically take a sedan and make it a convertible without any repercussions(sic??).

  4. 4: Karthik | May 14, 2007, 4:19 pm | Direct Link

    India does not have the same safety standards

    Well it could be simple for a private citizen to do this, but for a company like BMW, this would be dangerous. Besides, to make any major modifications to the structure would mean more investment and this would also mean that they could not export the cars.

  5. 5: anantha | May 14, 2007, 5:52 pm | Direct Link

    India does not have the same safety standards
    See, I know India has emission norms. I dont know how that compares against the all consuming California standards that everything seems to be measured against, but we do have emission standards. Having said that, I don’t know if we have the equivalent of the NHTSA. But nothing prevents the companies from being proactive. In fact they can use safety as a USP as well. But in any case, I feel pricing is the key.

    Their stripped down version Made For India will need to be a huge step-down to compete on price

    Well, I am not sure that “strip down” would be the way to go. A couple of years ago, I read a Rediff piece that basically charged the auto companies of overcharging the Indian customer.

    Apparently, companies that make cars in India and sell it abroad sell it at a comparatively cheaper rate (will dig for the link and post it here for fisking, if needed). Which essentially means that the markup is bigger in India. So if BMW Mini wants to do it, they *could* still meet the pricing standards that Hyundai/Suzuki et. al. have set and can still give the customer more bang for their buck.

  6. 6: anantha | May 14, 2007, 5:53 pm | Direct Link

    Personally, I am waiting to see the longer wheel-base Mini that was “concepted” around the major auto shows last year. The Mini pavilion gals at the NY Auto show told me that it will be available as a ‘09 model.

  7. 7: Ashu | May 14, 2007, 7:41 pm | Direct Link

    Don’t believe everything pavilion gals tell ya ;)
    Although in this case, they were likely right.

    I *DO* strongly object to this gross (ha - pun!) manipulation of the Mini genes. The current one is already 2 feet longer than the original - more of a stretch just makes it more regular-car-like - in which case it turns into an overpriced, stub-nosed, no-longer-cute (but longer!) version.

    And Karthik - there are a few 4-door convertibles made - and by the likes of Volvo, Audi and Saab - no less. These manufacturers are among the bastions of safety - worldwide!

    As for Indian ’standards’, new small cars have to adhere to MUCH more stringent requirements than in the US. The US has ridiculously lax emissions standards, and (IMnshO) overly stringent safety requirements. Sigh.

  8. 8: Santosh | May 14, 2007, 8:38 pm | Direct Link

    Btw, if these car companies want to test high mileage hybrids and such, no better testing conditions than the stop-n-go traffic of Indian cities.

  9. 9: Karthik | May 14, 2007, 8:41 pm | Direct Link

    Santosh: Stop and stop traffic you mean?

  10. 10: Karthik | May 14, 2007, 8:44 pm | Direct Link

    Anantha: India does have emission standards as far as automobiles go. Remember the whole Euro-II thing which later became Bharath-III.

    I agree with the fact that Indians are paying more. If BMW wants to capture the market, that will be a good strategy. Just like MSFT sells / sold their game consoles at a loss to capture the market. Except here BMW would have to draw a fine line between breaking even and making a loss when comparing what they make elsewhere.

  11. 11: Mini in Indien - MINI² - Das große New MINI Forum aus Deutschland für alle MINI2, One, One Diesel, Cooper, Cooper S, Cabrio, John Cooper Works, Tuning, BMW mini, JCW | May 15, 2007, 3:36 am | Direct Link

    [...] the kind of performance, image or following like the MINI does in the rest of the world. Quelle: http://uberdesi.com/blog/?p=593 __________________ LGW MCS EB/W/Union Jacks Electric Blue Minis - was kann es schöneres [...]

  12. 12: Mini Cooper - Coming to India on Flickr - Photo Sharing! | May 15, 2007, 6:49 pm | Direct Link

    [...] Mini Cooper - Coming to India To take full advantage of Flickr, you should use a JavaScript-enabled browser andinstall the latest version of the Macromedia Flash Player. _decorate(_ge(’photo_notes’), _ge(’photoImgDiv498196597′), 498196597, ‘http://farm1.static.flickr.com/219/498196597_23456fe1b8_t.jpg’, ‘1.6′); You can read the related commentary here.  [...]

  13. 13: anantha | May 15, 2007, 9:27 pm | Direct Link

    Ashoe: I will not let myself be misled by mere beauty or makeup or a short skirt for that matter. My deductions are based on pure logic and information. ;)

    I read about the long wheelbase Mini on Car and Driver last year, so was expecting to see a live version in the Auto Show, just like the Civic Si sedan, which I might just buy. I think a longer wheel base Mini would work because there are no changes to the classic profile.

    Karthik: About the emission standards in India, thats what I said - that India has them.

    If BMW wants to capture the market, that will be a good strategy. Just like MSFT sells / sold their game consoles at a loss to capture the market.

    The article I read hinted that car companies will not make a loss even if they offered more features at a price. They compared the Alto and the Swift which were being exported to the UK from India and were sold at a cheaper price but with much more features than India. And I am sure safety features were part of these extras too. I haven’t been able to dig up the article yet though. It was on Rediff.

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