The 200,000 euro fee that Indian authorities charge for homologating new car models for selling in India is bothering German luxury carmaker BMW, which wants to bring its small car model Mini in India by 2009. "2009 is the 50th anniversary of Mini and we want to make sure that the Indian customers also become a part of the celebration when we launch the model there. However, the homologation fee of 200,000 euros for a model is a big demand," BMW Group senior vice-president Kay Segler said.
Homologation is the process by which car models are checked if they complied with the Indian rules, regulations and safety standards and the Automotive Research Association of India (ARAI) conducts the process.
"When we consider a model like Mini, we have to keep in mind the costs. With the homologation fee so high we are constantly discussing within the group," he said, however, adding BMW was committed to launching the car in India.
He said the company, which had started a market feasibility study for launching the Mini in India, has received a good response from customers.
"Going by the response we get, we can assure we will not be selling Mini in small numbers in India," he added.
Asked about the possible pricing of Mini, he said it was difficult to predict, but the company which sells completely built unit in China priced it around the same price as its 3 series sedans. In India, the 3 series are priced at Rs 27 lakh upwards.
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