Market getting difficult, may miss this year's sales target: BMW
BMW India on Thursday said it may miss the target of selling 10,000 vehicles in the domestic market as the luxury segment has also been affected by the slowdown witnessed in the automobile industry.
"Yes, it is increasingly becoming tough and we could miss our target of selling 10,000 units this year," BMW India President Andreas Schaaf told reporters here.
He said the month of October, which is usually one of the best months along with March in terms of sales, has not been as good as expected.
"Till October this year, we have sold a total of 8,042 cars in India, accounting for 40 per cent of the luxury car market. Since then it is getting much more difficult and the market has changed," he said, adding that achieving the target for this year is becoming difficult now.
"Overall, there is a negative sentiment in the market. Earlier in the year the luxury segment was unaffected by it, but it has also started feeling the effect," he added.
Asked if the company will cut production due to the slowdown, Schaff replied in negative.
"We have our plans for 2012 in place and we will go ahead with it. The growth rate may have come down from 70 per cent to 30 per cent but we have to remember that there is still growth in the market," he said.
Earlier this year, the company had increased production capacity of its Chennai plant to 11,000 from 10,000 units previously.
Car sales in India have been declining this year and registered the steepest monthly decline in nearly 11 years in October, tanking by 23.77 per cent on account of a huge drop in output by the country's largest car-maker Maruti Suzuki due to labour trouble, coupled with high interest rates and rising fuel prices.