BMW sees untapped potential for Mini brand in India

The new Mini three-door and five-door models have made their debut in India, today in Mumbai. Usually, with new models, companies target bigger sales. But for Mini's parent BMW, the focus is to build the Mini brand in India before chasing the numbers. "Everybody in India knows brand BMW. Mini may be known in big cities but not everywhere in India. So, there's a certain process. Also, we have to see that dealers develop sustainable and profitable business," says Philipp von Sahr, president, BMW Group India.

The next addition to the Mini range will be the Cooper S in the first quarter of 2015. Beyond that, Mini may go slow on introducing new models. It could focus on popularising the brand and create a market before launching any more models. "It doesn't make sense to have many models because it involves extra cost for homologation, marketing and so on," says Philip von Sahr.

Since launch in 2012, Mini has sold less than 1,000 units. In 2013, it sold around 420 units. The BMW India chief hopes to celebrate the sales of the 1000th Mini in India "soon".   

At Rs 31. 85 lakh for the three-door Mini and Rs 35.20 lakh for the five-door version, the new Minis are definitely not cheap. But von Sahr sees untapped potential which he plans to tap for Mini and the more popular, big brother BMW brand. The untapped potential lies in the customer base of young achievers who buy high-end models of mainstream brands like Honda, Toyota or Hyundai. The other group which could be tapped are Indians who spend big money on real estate, education, weddings but not on luxury cars. "This will change step by step. This is really very interesting for luxury cars and Mini. That's why I believe in the next 5-6 years the premium luxury market, where Mini is, will grow faster than the total market," says von Sahr. 

Local assembly of more Mini models would also be considered in the coming years. That would help the brand to be relatively more affordable. Currently, only the Mini Countryman is assembled at the BMW plant in Chennai. A new engine plant, which will be commissioned in the beginning of 2015, is expected to assemble engines for both BMW and Mini models.

For now, the focus is to popularise the Mini brand and also enhance its presence. Mini will see a new showroom in Chennai next year. Currently, it is sold through four dealerships.