BMW is now affordable to most bikers

 

BMW Motorrad, the world famous motorcycle wing of the German automaker BMW, has globally sold more than two million units of its high-end two-wheelers since the start of production in 1923. With the globalization of its products and the demand ever on the rise, the BMW opened a production unit in India to manufacture its first sub-500 cc bikes to create a bigger market share in the more affordable motorbike segment. Saurav JB Rana, chairman of Himalayan Motorrad, the autho­rized distributors of BMW Motorrad bikes in Nepal, who is also a pas­sionate biker himself, talks to Sunny Mahat of APEX about the newly launched BMW models in Nepal and their market presence. 

BMW’s new Indian production unit had created quite a buzz. How has been the response to its bikes in Nepal? 

It has been only a month since we launched the two India-manufac­tured models of BMW Motorrad— the G 310 R and G 310 GS—and the response has been very good. These bikes are very premium, handling wise and in their fit and finish. They are manufactured in India but for the global market so quality control is amazing. These bikes are going to the European market and the US as well so we can rest assured that the refinements in their production make them one of the premium motorcycles in the Nepali market.

Which segment of the Nepali market are you targeting with the BMW Motorrad? 

BMW has always been a premium category bike and it still is one of the best-selling bikes in the world. And with greater global demand for lower displacement bikes, BMW introduced G 310 R and G 310 GS.

Since the competition in the lower displacement motorbikes has increased, BMW’s latest produc­tions is a huge achievement for the company and a boon to the bikers as well. Previously, BMW motor­bikes were intended for high income groups with heavy purchasing power, and were unaffordable to many in Nepal. But with the new productions, they have now become affordable to all types of bikers and at these price ranges, they will give a tough competition to the other manufacturers in the Nepali mar­ket. They have already captured the mid-range market many Asian coun­tries and the numbers sold speak for themselves. Also, for customers looking to get “big bikes”, we are importing them from Germany on order basis.

BMW has always been a premium category bike and it still is one of the best-selling in the world

For a brand whose prices starts at Rs 950,000 in Nepal, how do you justify the value?

Product valuation depends on many things, most importantly the Research & Design that goes into it, the quality control in manufactur­ing, the brand name and its position in the market. BMW bikes coming to Nepal are priced between Rs 950,000-Rs 1,200,000, which is an amazing pricing strategy.

Nepal is one of the most expensive motorcycle markets in the world because of high customs duties. So pricing wise, most people would never have thought of being able to buy a BMW till these ranges became available. The build quality of these bikes is so robust that the recom­mended servicing time is either 10,000 kilometers or 1 year. So, for a pre­mium brand like BMW, the pricing is just right in Nepal, also consider­ing the prices of other competitors in the 300 cc category.

Despite the fact that BMW is a global brand, it is a new entrant in Nepal. So how assured can the customers be about its aftersales services and support?

Aftersales is the key in automo­biles business. Since we have been in this business for a few years now, we already have a setup. Also, for BMW bikes, all our mechanics have been trained in India and Germany and the spare parts for these low-main­tenance bikes are also comfortably priced. So we can provide the BMW riders with continuous support long after purchase.

What are your market-penetra­tion strategies in this highly com­pletive two-wheeler market?

Market penetration for a new product is always difficult. Right now, we’re trying to differentiate our products from the competitors’. This is German technology and the best in the market, and this is what we are trying to project. On paper, BMW bikes have a clear edge but there are many riders who do not know much about technical aspects. So we are planning to create for them riding opportunities so that they get a “come feel it yourself” experience, let them try the bikes that are popular right across the planet. We will be organizing biking tours around the country to let peo­ple explore BMW bikes.

We have started sales outside Kathmandu in Pokhara, Butwal and Chitwan and as of now, the number of customers taking test drives from the all outlets is overwhelming. We also have exchange facilities and financing tie-ups with a few banks to help our customers.