There are a few reasons why it has climbed to that spot. For one, brand fatigue has led to the buying lot looking beyond Mercedes-Benz and BMW has always been the second most recognisable luxury car brand after Merc. This is despite the fact that BMW had very small presence in the form of a single dealer in Mumbai before the company formally entered the market in 2007.
The company has also been quick in offering its international models here within no time. So, the 7 Series came in within months, while the X6 came in even before the model completed its first year elsewhere. This is also true for the X5 and Z4. Their bread and butter models are well spaced out like the two petrols and single diesel for the 3 Series and two diesels and two petrols for the 5 Series. If anything, it forced the competition to offer more engine variants on all their models.
Thus BMW came across as a manufacturer that followed innovation. The X6 and 5 GT are too radical even for Europe and yet BMW offered them here, and it has received a very good response. BMW also wasn't scared of bringing in its high performance M models here, which led the competition to finally respond. Why Mercedes-Benz took so long to do so with their AMG range still befuddles me.
But the biggest reason why BMW has climbed up so quickly in less than three years is its BSI package. The BMW Service Inclusive package is a one-time payment package that covers all eventualities, (mechanical not accidental). So for instance, you buy a BMW 320d and want one of these packages, you can pay Rs 1.4 lakh up front for a 3-year/60,000 km package to Rs 2.8 lakh for a 5-year/100,000 km package. When you do, your service expenses, including labour are taken care of. When your car's warranty expires after two years, your car continues to get covered. So say your air-con condensor fails, it gets replaced by BMW with no payments involved and no questions asked. What's more, if you sell your car before the BSI period gets over, your next buyer retains the benefits. The BSI package is linked to your chassis and a BSI package obtained in India can be used elsewhere in the world at BMW dealerships for the same car.
Then, if you pay an additional Rs 55,000 up front you get the BMW Secure package (for a period of three years). This allows you to change all your run-flats once a year free-of-cost, (a set costs Rs 25,000) while you lose nothing on depreciation if your car is booked as a total loss in an accident.
You are probably wondering how paying so much really helps? It actually does. Most of these cars have a whole bunch of electronics and parts that do have a tendency to fail with alarming alacrity in certain instances. Some of my friends and acquaintances who have owned such cars have complained about their air-con units, suspension components, electronic modules and what not failing within a few thousand kilometres. Which is fine if your car is under warranty, but once you are out you could be paying tens of thousands, in some cases even over a lakh for these parts. Think of BSI then as an insurance scheme. Even if you pay Rs 3 lakh for one of these packages for a five year period, you could end up saving more than you would have otherwise spent outside warranty.
Buying and owning luxury cars was never cheap, and BMW India understood that very well right from the word go. In fact, a dealer rep once told me that 80-90 per cent of their buyers go in for the BSI package, so good is its efficacy. Audi India have recently started a very similar package, so have Volvo (who've made it compulsory) while Mercedes-Benz is still to do so, though some dealers have their own packages.
Eventually being in the luxury car space is not always about selling what's new and what's hot. It's also about making the buying and owning experience hassle-free. And as the market seems to suggest, those who do will stay at the top.
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