CHENNAI : The base petrol model of the 3 series car that the German carmaker BMW is planning to roll out from its upcoming facility near here will cost Rs. 26.95 lakh ex-showroom. The diesel version of the base model - 320i - will cost Rs. 29.70 lakh. The 325i model will be priced at Rs. 32.50 lakh.

Peter Kronschnabl, President, BMW India Private Ltd., said the Indian facility would go on stream by March-end. The initial investment in the plant would be Euro 20 million.

In an interaction with The Hindu, he said the plant would initially roll out 3 series cars. By May-June, the 5 series cars would also come out of the facility. The company had not yet firmed up the prices for the 5 series vehicles, he said. "The company will try to have a uniform price across the country. We don't segment the price," he said.

The President was confident that BMW would be able to sell 1,000 vehicles in the first year of production. The facility would have a capacity to produce 1,700 vehicles on a single-shift basis. Mr. Kronschnabl said it made sense to "bring another series into the plant." He said BMW would evaluate the market entry of Mini, the twin-door small car, next year. "If the evaluations find it feasible, we will introduce Mini in India in 2009," he added. To a question, he said BMW could think of introducing Mini if it was assured of sales of 200 units on a sustainable basis.

Mr. Kronschnabl said that BMW laid much store by quality. In this context, he said around 30 people from Munich had been positioned at the India facility to address quality-related issues.

The President said the company's focus would be on brand and the entire BMW environment. All the BMW dealer outlets would provide a uniform experience, as available in outlets elsewhere in the globe.

BMW would have eight dealer outlets in India - two each in Delhi and Mumbai and one each in Bengaluru, Chennai, Chandigarh and Hyderabad. It was also planning one more in Pune.

The President also said that BMW would have its national parts' warehouse in Mumbai and a national training centre near the plant in Chennai.

He said the company was close to finalising an arrangement with a national bank to provide retail and dealer finance.

On indigenisation, he said that seat covers, seat electronics and door panels would be sourced from within the country. He felt that the premium segment market was artificially low owing to lack of choice. He expected the segment to grow faster in 2007. The premium segment totalled about 3,500-4,000 cars, he said.

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