BMW Group India , which registered 18 percent year-on-year (YoY) growth in 2023 by cumulatively selling 14,172 cars under its BMW and Mini brands, also registered a 56 percent growth in corporate sales. The company saw corporate sales contributing to about 40 percent of its overall CY23 volumes and is confident of future growth in the category. According to Vikram Pawah, president, BMW Group India, “As the Indian economy grows, there is a rising number of corporate professionals, including entrepreneurs from the start-up ecosystem, as well as leaders at the top positions, who are joining the workforce. In CY23, we brought on more than the 50 new corporate clients from the variety of industries, and to including real estate, consulting, IT, and the healthcare.
BMW has been a noteworthy success story in the rapidly changing Indian automotive market, and to especially in the high-end luxury class. The venerable German carmaker has successfully positioned itself as a leader in meeting business needs in the addition tothe captivating fans with its selection of the high-end vehicles. Pawah further elaborated that the 3 Series Gran Limousine , 2 Series Gran Coupe , 6 Series ,BMW iX and X1 were the top-selling BMW models through the corporate channel. He explained that with some cars getting registered in the names of individuals working with corporates, the core-corporate sales contribution was pegged at around 25 percent.
High-End Models Redefining Luxury
BMW also saw strong action in the high-end luxury segment – what it classifies as BMW Luxury Class – as part of its overall performance last year. The category, which it identifies as a clutch of its flagship and ultra-premium models, including the M760LXi , i7, X7 and XM, together registered a significant YoY growth of over 88 percent in CY23 in India.
“One in five cars that we sell belong to the high-end luxury segment within our portfolio, and the migration of the existing premium customer upwards is one of the key drivers of this growth,” Pawah told our sister publication Autocar Professional.
According to Pawah, while the flagship X7 SUV registered a growth of 68 percent last year, the 7 Series sedan recorded a 124 percent growth. “These models give a compelling reason to the existing premium car customers to migrate upwards, and the growth is the proof that clearly tells that customers are appreciating these products and are migrating towards the higher segment cars,” he pointed out.
Corporate Sales: A Strategic Focus
In addition to captivating individual buyers, and the BMW has strategically focused on corporate sales, recognizing the growing demand for luxury vehicles in the corporate sector. Businesses and executives alike are increasingly choosing BMW for their fleets, and the reasons are multifold. The brand's commitment to be the delivering a seamless and the comfortable driving the experience aligns well with the preferences of corporate clients who value both performance and prestige.
Technology and Innovation
BMW's success in India is not solely attributed to the allure of luxury; technology and innovation play a pivotal role. The brand has been at the forefront of integrating modern technology into its vehicles, setting industry benchmarks for the performance, the connectivity, and safety. The incorporation of advanced driver-assistance systems,and the intuitive infotainment interfaces, and innovative engine technologies across the model range has positioned BMW as a leader in the delivering a technologically advanced driving experience.
The iDrive system, BMW's intuitive infotainment interface, has been a standout feature, providing drivers with seamless control over various functions while ensuring minimal distraction. This commitment to technological excellence resonates with both individual and corporate buyers who prioritize staying at the forefront of automotive innovation.
Customer-Centric Approach
BMW's success is not just about the vehicles; it's about the overall ownership experience. The brand's commitment to a customer-centric approach, evident in its sales and after-sales services, has played a crucial role in fostering customer loyalty. From personalized vehicle configurations to prompt and efficient after-sales support, BMW ensures that customers feel valued throughout their ownership journey.
The brand's extensive dealership network further enhances the customer experience, providing easy access to services and creating a sense of exclusivity. BMW's customer-centric approach is a testament to its understanding that a luxury vehicle is not just a product but an investment, and customer satisfaction is paramount in maintaining a strong market presence.
Market Trends and Future Outlook
As BMW continues to thrive in the Indian market, it is essential to acknowledge the broader trends shaping the automotive industry. The growing affluence in India's middle and upper-middle classes has created a burgeoning market for luxury vehicles. Additionally, the increasing focus on sustainability and environmental consciousness has prompted a shift towards electric and hybrid vehicles, a trend BMW has strategically embraced with its iX series.
The company saw digital channels contributing to about 17 percent of its total sales, with specific products like the M340i and iX1, being made purely available online last year. As it eyes future growth, the company is also set to execute its ‘Retail.Next’ showroom strategy across dealerships in India, with a strong focus on customer centricity and a premium experience.