India to become fastest-growing market for BMW's MINI, says executive

By Praveen Paramasivam

CHENNAI, June 17 (Reuters) - India is expected to become the fastest-growing market for German automaker BMW's MINI by the year-end as the brand aims to more than double sales in the country, an executive told Reuters on Wednesday.

India's affluent consumers are splurging on goods as incomes rise and social media–driven awareness of global trends makes the country a focus for multinational companies including Estee Lauder and BMW.

"We expect the wealth and the income level will grow accordingly (with growth in GDP all the way through 2030) and, with that, there will be a demand also for luxury and premium cars," said Florian Kuenstner, vice president at MINI overseeing China, Asia-Pacific, Eastern Europe, Middle East and Africa.

India is a fast-growing market for luxury cars, though those make up only 1% of total car sales of more than 4 million, due in part to high import tax, which makes the pricing steep.

On the sidelines of the launch of the locally produced MINI Countryman C car, Kuenstner said MINI is planning to double its dealer network to 21 by the year-end.

He also said India offered "future potential" while the market in China is more mature and competition is more intense. India accounts for only a fraction of global MINI sales.

LOCALLY PRODUCED CARS

After weeks of uncertainty from the Middle East war, a potential Iran peace deal as soon as Friday could help stabilize tensions that have snarled supply chains, though talks remain fragile and companies warn the impact won't fade overnight.

Kuenstner said MINI rerouted some logistics during the conflict but did not face supply disruptions.

"Having a car locally produced also (offers) obviously a more stable outlook because we are then not dependent too much on some of the short-term logistical challenges which we, maybe, face (when) we only import," Kuenstner said.

(Reporting by Praveen Paramasivam in Chennai; Writing by Haripriya Suresh; Editing by Devika Syamnath)