BMW might take 4 months to deliver your car
What's the story
The ongoing conflict in West Asia could extend car delivery wait times from 1.5 months to as long as four months, Hardeep Singh Brar, President and CEO of BMW Group India, told CNBC-TV18. He said that while the situation was manageable for now with enough raw material and vehicles available, some inventory is stuck in transit due to supply chain disruptions.
Crisis management
Governments should resolve West Asia crisis quickly: Brar
Brar urged governments to resolve the West Asia crisis quickly, in order to minimize its impact on global logistics as well as the automobile supplies. He said, "We are struggling to manage the demand and the supply," adding that customers are still queuing up for deliveries despite longer waiting periods.
Business performance
Brar on luxury vehicle demand in India
Brar credited the company's almost 17% growth in the June quarter to GST rationalization and personal income tax relief measures. He noted that demand has remained strong after the industry grew 14% last year, with luxury vehicle segment demand continuing at around 20%.
Trade agreement
India-EU FTA unlikely to affect BMW Group India's operations
Brar welcomed the proposed India-European Union free trade agreement, saying it could lower import duties and bring more high-performance European cars to India under a quota-based system. He said the agreement was unlikely to materially affect BMW Group India's domestic operations as around 95% of its vehicles sold in India are already localized.