The German automaker BMW has launched yesterday 3 new vehicles in India - Gran Turismo (Sports car), sports coupe' X6 M and super luxury sedan 760Li - at the Auto Expo in Delhi.

The Gran Turismo, introduced with a limited edition of only 100 units, has been priced at Rs 63 lakh (ex-showroom). While the X6 M sports comes with a price band of Rs 1.29 crore and the fifth generation BMW 7 series car 760Li is available at Rs 1.3 crore.

Mr. Peter Kronschnabl, president of BMW India said BMW India delivered good operating performance in 2009 and achieved a market leadership in the luxury car segment. The company will also invest $50 million to start its auto finance business in the country in the middle of this year.

BMW have taken over Mercedes Benz last year in sales and expanded its market share to more than 40% in the luxury car segment.

BMW has also showcased its Sports Utility Vehicle (SUV) X1 at the auto exhibition. BMW will import X1 as a completely knocked down unit and by the end of 2010 the company will roll out X1 from its plant in Chennai.

Mr. Kronschnabl said BMW X1 is a milestone in the India strategy and the company is eyeing to make additional capital investment to expand its capacity at Chennai.

During 2009, BMW has sold 3,619 cars in India and currently has the capacity to produce 3,000 units annually working in a single shift. The '3' and '5' series models are produced in its Chennai plant but imports other premium models like its '6' and '7' series cars. BMW has also sought a licence to operate its wholly-owned auto finance arm BMW Financial Services as an NBFC.

Last month, Volkswagen launched its new vehicle named the New Beetle, in Mumbai and is priced at Rs 20.45-lakh ex-showroom Delhi while the Beetle is the very first Volkswagen car people remember about, with its unique shape and reliability.

Beetle, the new car from Volkswagen, which was launched in India in the first week of December, is attracting a good number of customers and the company is eyeing to sell more than 300 Beetles during the year 2010.

On the other hand, Volkswagen also launched its Touareg, its sports utility vehicle, which was earlier available only on order but now it would be stocked in India and hence, readily available.

In a recent survey by Credit Analysis and Research (CARE) Ratings, India's domestic passenger vehicle market is expected to grow at a compounded annual growth rate (CAGR) of 13.9% over the next 5-years.

However, as per the survey, the small car segment is likely to clock a CAGR of 15.8% from 0.94-million units in FY 09 to 1.95-million by end-FY 14 while there will be a rise in preference for utility vehicles for personal use which would drive the segment's growth.

Meanwhile, lower excise duty of 8% on small cars (mini- and-compact) as against 20% for big cars would largely contribute to the higher growth of small cars whereas the mini-segment sales will grow at a CAGR of 40% from 49,383 units in FY 09 to 2,65,803 units by the end of FY 14.

The compact segment sales will rise at a CAGR of 13.7% from 8,88,676 units in FY 09 to 16,80,349 units in FY 14 while around 5.5-million households can afford a car with on-road price not exceeding Rs 3,50,000 (FY 09 prices).