BMW India, a 100% subsidiary of the BMW Group, is planning to launch its cult premium small car MINI in India to cash in on the growing demand for luxury brands in India.Mini would be priced around Rs.2 million ($49,443.8) and it would be the costliest small car in the country.

“The team that carried out the feasibility study for the launch of Mini has submitted its report. It is being studied by our headquarters,” Peter Kronschnabl, president of BMW India Pvt Ltd, said here at Chennai.

Launching the company’s first dealer outlet in Chennai, he said: “Mini is not just a car. It is a brand. BMW has to study the feasibility of its launch here.” The company is currently looking at launching the X6 model. “Homologation of a vehicle takes at least six months. X6 will not be (launched) before 2009,” said Kronschnabl.

Upbeat about the company’s operations in India, Kronschnabl said BMW has increased its Chennai plant’s capacity by 1,300 units to 3,000 per year at an outlay of $750,000. “With this, the total investment in Chennai plant is $13 million,” he added.

Speaking on the company’s plans of expanding the dealer network, Kronschnabl said BMW would have 12 dealers in tier-one cities. “In the second phase of our distribution network expansion we will set up small outlets in tier-two cities,” he added.

Source: The Economic Times