Smaller towns will drive luxury car market, says BMW India head
Ahmedabad,MAY 22(PTI): Smaller towns will drive the growth of the luxury car market in the country, according to BMW Group India president Vikram Pawah. The premium car brand is also focusing on emerging towns, opening outlets in Ranchi, Aurangabad and Madurai recently, Pawah told PTI here on Tuesday.
It also plans to open dealer outlets in a majority of seven cities it plans to expand by the end of 2018, he added. “Smaller towns are the future of the (luxury car) industry. We are clearly seeing growth coming from these emerging towns, which is why we are reaching out to these towns more and more,” Pawah, who was in the city for the opening of a new dealer showroom said.
The industry will get a fillip with the government focusing on infrastructure development in emerging towns, he added. “Out of the seven outlets planned for this year, most will come from emerging towns,” he further said.
Pawah also called for “rationalisation of tax structure” for the growth of luxury car segment in India, saying tax structures for the segment is much higher here compared to other markets. While referring to GST as a “fantastic” initiative, he expressed dissatisfaction on the way it was implemented.
“I am hoping the final aim of GST is to look at uniform tax rates…We hope at some point we will start looking at the category of cars as cars. If that happens, we will surely see people like you and me able to get these (luxury) cars much easier,” he further said.
He stressed that rationalisation of the tax structure in line with international norms will help in growth of this market. BMW India launched nine products at this year’s, and showcased seven products to be launched this year. The company is looking to clearly create a new segment, or redefine values of the existing segment to expand the market, Pawah said.
The company is set to launch its two-wheeler brand, 310 R and 310 GS by the second half of this year, and expand dealer network for BMW Mini, its premium small car brand, from five to seven by year end, he said.
