BMW 'Mini' not coming to India in '09

For those of you who have been waiting to lay hands on BMW’s iconic premium small car ‘Mini’, there is bad news.

The German auto major, which had announced plans to roll out the car in India in 2009, has postponed the launch, saying the market "does not appear to be viable".

"We will not be launching the Mini in India in 2009," BMW India president Peter Kronschnabl said.

The company has just finished a feasibility study that pointed out that conditions were not conducive to bring the model to India soon.

"We have taken the decision about a week back," Kronschnabl said, though adding that the decision does not mean an end to Mini’s India launch.

"We have not abandoned the plans altogether. But yes, we have certainly postponed as conditions do not appear to be viable at the moment," he said.

The high-performance Mini is an iconic brand globally and despite its small size, it carries a price tag comparable to premium cars. Originally a British car brand, it was bought over by BMW.

Though BMW has been a runaway success in the Indian market, especially after it started local assembly of 3 series and 5 series sedans at Chennai last year, the possibility of developing a great market for a ‘premium small car’ would have prompted it to delay the launch.

The company had already said it had no plans to assemble the Mini in India but rather get it in through the completely-built unit (CBU) import route, which would have meant a hefty price tag of around Rs 20 lakh.

Analysts feel that not many Indians are ready to attach status with a car that is of a small size, even though it comes at a price higher than that of a premium sedan.

"It is the mindset. However, it should be added that if launched, there would be a niche market for the car in India and some people would be willing to pay for the brand that offers luxury and features of any sedan along with an iconic status," an analyst with an auto research firm said.

Without elaborating much, Kronschnabl said the decision was not prompted by the current negative sentiments in the market due to the economic slowdown and high interest rates on retail purchasing.

"We feel that high net-worth individuals are not affected by this slowdown and the overall market for luxury cars would grow," he said.

The Mini’s absence would mean good news for BMW’s fellow German carmaker Volkswagen, which plans to launch its ‘Beetle’ model in India this year.

The Beetle, another small car that also enjoys iconic status no less than the BMW Mini, is likely to be introduced in India by VW later this year though the CBU import route and could sport a price tag between Rs 15 lakh and Rs 20 lakh.

BMW had always appeared to be hesitant in launching the Mini in India. Earlier this year, the company had said that if launched, the car may not see a national debut but would be sold only in Delhi and Mumbai.