Audi is now number one in India

Audi India for one has never shied away from stating that it wants to be number one among the luxury marquees in the country. And it hasn't tried to hide behind a moral curtain either, just in case it failed to achieve its objective. I guess this had something to do with the confidence that Audi had both in its product lineup as well as its strategy at the retail end of things. And it surely has paid off because Audi India with sales of 2616 units in the first quarter of this calendar has not only registered over 15 per cent growth compared to the same quarter last year, it has also now become the number one luxury car maker in the country in sales volume.

BMW and Mercedes change positions in India

Clearly it's not been a great quarter for BMW. And maybe this is one of the reasons the company has been so cagey about its sales numbers. Even after our repeated attempts, BMW refused to share the data or comment on its performance for the quarter. But, unofficial estimates put this figure at just under 1500 units.

And this can't be good news for the Bavarian carmaker, especially with Audi and Mercedes both registering in excess of 2000 units. What makes the situation even more challenging for BMW is that it has no new offerings in the pipeline for the immediate future. The brand new 3 Series is less than a year old, while BMW's cheapest offering, the X1, was updated less than three months back. The only car that is due for an update is the 5 Series but that too isn't due anytime soon. However, by the end of the year things should start seeing a turn when BMW brings in the much awaited 1 Series, a premium hatchback with a choice of 4-cylinder petrol and diesel engines that will appeal to a wider audience.

In the interim, the dealers can probably sense the difficult times, because even after repeated statements by Philipp von Sahr, President, BMW Group India about BMW not getting sucked into the business of offering discounts like its competitors, the dealers are more than happy to do so. Not only are the dealers willing to give hefty cash discounts, they are also making the purchase even more affordable by offering tailor made finance schemes. While these schemes and offers may be bringing in consumers, the premium brand image they enjoy is taking a beating.