German automaker BMW is planning to localize the production of its premium car brand Mini up to 80 percent in order to reduce its costs and avoid duties on import and the more than 100 percent duty attracted by completely built units (CBU) in India. Thus, the Mini range of car models is currently available in the Indian auto market for more than double its actual price.
The company is considering options of localizing the manufacturing process of the Mini range which will allow it to follow a competitive pricing strategy in the Indian premium car segment which has other players such as the Volkswagen Beetle, the Mercedes A-Class and the Audi A3. The Mini car range can be assembled at BMW’s Chennai plant where the X1, 3-Series and the 5-Series are also assembled.
In times of sluggish sales in the Indian auto industry, localization of production instead of importing CBUs would save considerable amount of cost to the company and would also allow competitive pricing. The entry level car model in the Mini range, the Standard Cooper currently has a price tag of Rs 26,15,000.
