BMW to drive in smaller models; unveils hybrid sporter

German luxury carmaker BMW plans to introduce its 1Series hatchback and the Mini compact within two years to stay ahead of the competition in the Indian luxury car market, the company said on Tuesday.

"The Indian market is evolving fast, and as the leader in luxury cars, we are looking at our compact range of cars to meet varied preferences of customers," BMW India President Andreas Schaaf said.

The 1 Series and the internationally popular mini are slated to cost Rs22-27 lakh.

"We are doing everything to stay ahead of the competition and drive into new segment that would keep the customers delighted," Schaaf said during the unveiling of BMW's concept hybrid diesel sports car that would be fuel efficient as well as fast.

BMW tops the luxury car market, which grew a record 70 per cent last fiscal to more than 15,000 cars. It is closely followed by Mercedes and Audi. Other rivals include Porsche, Jaguar and Land Rover.

Schaaf also said the company would not need to hike the prices of its locally-produced models, the Series 3 and 5 sedans and the SUV X1, as it has already started assembling the engines locally, keeping it out of the purview of the new 30 per cent duty on completely knocked down units.