With legendary BMW chic

In an exclusive interview with K. Pradeep, Peter Kronschnabl, president, BMW India, says there is a growing clientele for this luxury car

Photo: K.K. Mustafah 
 
Dream machine Peter Kronschnabl, president, BMW India Private Limited, and the BMW car

Sidestepping cliches usually used to characterise the ‘typical German’, Peter Kronschnabl, president, BMW India Private Limited, presents a more realistic image. Though he proclaims that he is ‘very German’ in his attitude and habits, two plus years in India surely have made an impact. He doesn’t mind spicy Indian food, not everyday though and has done a thorough recce of Indian business conditions.

Peter talks slowly, each word well thought out with a definite German twang to his English. There is no frantic edge to his talk, which is often lit up with an occasional flash of a smile.

Challenging

With years of experience in Africa and the Caribbean, Peter took up what he believes a most challenging assignment – India. It took him more than a year to prepare a project report that detailed the viability of starting BMW operations here. “The system in the company is such that you need to convince the board through a project about the viability and also the right time to start operations. Yes, when we started off Kerala was one of the three options for our production facility. We needed a supply structure and that did not exist in Kerala. Ultimately we zeroed in on Chennai. It certainly has not been easy time. But the support we got was tremendous,” Peter said speaking on the sidelines of the launch of Platino Classic, BMW’s dealership in the city.

The BMW is a car with lure and intrigue. It manages to locate a cache of customers who is willing to buy what are essentially cosmetically enhanced luxury machines, automotive excellence, for an incredible price. Is a BMW just a status symbol? “Yes and no. There is a growing clientele, especially the young generation which understands the BMW. And there are those from a cross-section of the society, self-employed, CEOs, politicians who own a BMW.”

There is wide scepticism about whether the BMWs can ‘survive’ the torturous Kerala roads and the monsoon. But Peter has faith in his thoroughbreds. “The roads, like the infrastructure here, may not be very good. But the cars, if driven at the permissible speed, in the right way, will have no problem at all. All that one needs be is careful about not blowing up the machine.”

Like most Germans Peter has a passion for football. This, however, has waned with age. “Football was a favourite during my student days. Perhaps, there has been a shift in priorities. These days I play golf. I also do a lot of jogging. It certainly helps to take my mind away from business.”

In the last two years BMW India has grown, selling 2,703 cars till November 2008. The Chennai production plant has a capacity of 3000 units per year. “We ensure the customary premium quality of BMW. Final inspections and operational tests are done to ensure that the quality of each vehicle produced matches the BMW quality. We also entrust local production of accessories like seats, seat covers, seat electronics.”

And does this match the BMW standards? “Look for yourself. Take a look at the accessories of this convertible which is imported and this one (pointing to another model). There is no difference in the quality.”

The paint finish, the athletic alloy wheels, the upholstery exceptionally soft and sumptuous, soft grain twin needle contrast stitched leather seats, they are tactile beauties, each one of them, always special. “The concept of luxury is fast changing in India. Today customers are very demanding. It is not enough to make the cars models of sheer luxury. Everything we deal with, our office, the production plant, right down to the dealership. People travel a lot. They see the showrooms in London, New York and expect the same here. We cannot compromise.”

Despite this India is fundamentally a small-car market. BMW has still not ventured in this market. “Our small car is one that costs around Rs. 50 lakh. The same goes with motorcycles. We only have the super bikes. Both these will not be able to fit into the market.”

No talk on business these days is complete without reference to the meltdown. The BMW has a history of tiding over recession, more severe than the present in the past. How does the BMW company get its people to go along during these hard times? “We are objective in our actions. We try to set an example by getting to work early and being the last man to leave the office. We command credibility. People will have trust in you, we meet it eye to eye.”