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Rolls Royce sees India emerging as most important mkt

Monday, 27 July 2009

28 July 2009;economictimes.indiatimes.com:Nandini Sen Gupta: Rolls Royce Motor Cars, the UK-based manufacturer of luxury automobiles, sees India emerging as its most important market in the next five to 10 years, and is looking at using parent BMW’s supplier network in India to source components. The super-exclusive British marque, which sells cars on the basis of pre-determined quotas in low-volume markets, seems to have realised the potential of India, the second-fastest growing economy in the world. “We believe India will be the single most important market for Rolls Royce in the next 5-10 years,” said Tom Purves, the chief executive of the company. Mr Purves said the market for his cars is shifting from the West to the East with markets such as India and China contributing more to its growth. Rolls Royce cars are custom-made at its Goodwood factory in the UK, and the talk of sourcing components from a foreign country is a first for the carmaker. “We’re open-minded, and being within the BMW group network, we have access to all the purchasing power the group has and engineering opportunity that exists,” Mr Purves said. “In the long term, India represents a phenomenal business opportunity because we have seen a general movement of our business from the West to the East, to markets like India and China that have played a crucial part in the growth Rolls Royce has enjoyed,” Mr Purves said. India has improved its contribution to Rolls Royce’s overall business substantially. That’s good news because globally the company has seen a 25% dip. Once the brand new Ghost slides into the Indian market next year, the tally is expected to hit 50. The Ghost, to be priced Rs 2.7-3 crore, will be formally launched at the Frankfurt Auto Show this year, and bookings in India will kick off in autumn. Delivery of vehicles will begin in spring 2010, when the car will be formally rolled out in India. Rolls Royce, which was an intrinsic part of India’s princely past, made a re-entry into India in 2005, and was surprised when sales hit around a-car a-month beating expectations by miles. Although the company admits it benefited from its Indian heritage, it’s now clear it wants to target the “new Maharajas — the kings of business”. “Indians like our positioning. The personalised touch appeals to their sense of style,” said Mr Purves. That explains why these bespoke beauties are zipping off the showrooms in India. Despite the fact that they cost a bomb.