Media Information Statement by Mr. Peter Kronschnabl President BMW India Private Limited Mumbai October 12, 2009

BMW India Press and Corporate Affairs

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Ladies and Gentlemen,

It gives me great Joy to welcome you to the BMW Lounge at the India Couture week in

Mumbai.

Joy.

On the back of this three-letter word, we built a company, independent of everyone,

accountable to no one but the driver.

We do not build cars.

We are the creators of emotions.

We are the guardians of ecstasy, the thrills and chills, the laughs and smiles and all the

words that can’t be found in a dictionary.

We are the Joy of Driving.

No car company can rival our history.

Replicate our Passion.

See our vision. Innovation is our backbone, but Joy is our heart.

We will not stray from our three-letter purpose. We will nurture it.

We will make Joy smarter. We will push it, test it, break it – and then build it again.

More efficient, more dynamic.

We will give the world keys to Joy, and they will take it for a ride.

And while others try to promise everything, we promise one.

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The most personal, cherished and human of all emotions.

This is the story of BMW.

This is the Story of Joy.

Ladies and Gentlemen

The Fortune Magazine and Hay Consulting recently surveyed 4,000 global business

leaders and experts to ascertain: Which are the world’s most admired companies?

The BMW Group has been ranked “most admired company” in the automotive industry

for the second time in a row.

Not in Germany or Europe, mind you, but worldwide.

This is exactly how we see ourselves at BMW India

Let’s get straight to the point:

Now more than ever, we see that the number one position in the market is not

everything.

To survive this current market situation, even perfectly healthy companies need to show

• a high degree of flexibility,

• the ability to stand their ground in a fiercely competitive environment,

• as well as new ideas and the strength to create and promote new products

We have sold more than 2738 cars in India till October 2009.

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In the past few months, we managed to increase our market share in the Luxury

segment of the Indian automotive market to over 42 percent (from 9 percent at the end of

2006).

This accomplishment is proof that our Market Entry Strategy for India was accurately

prepared and proves to be correct.

Our products are extremely desirable and our brand enjoys recognition.

We are the number one in the Luxury segment in India.

Nevertheless, we think this is not the time to get caught up in a race for maximum

volumes.

We were prepared to meet our challenges head on and ensure our company’s success

for the future because

− We invest in our brand.

− We focus on our customers.

− We actively shape our future.

We were able to anticipate trends and be prepared for the future and that gave us an

edge today.

These qualities enable us to weather effectively such stormy conditions and continue to

invest in our future.

2007 and 2008 were both excellent years for BMW India.

Various activities initiated in 2008 have provided us with a solid basis for the challenging

year 2009.

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We established the BMW India Headquarters in Gurgaon (NCR), a Central Parts

Warehouse in Mumbai and the BMW Plant Chennai in Tamil Nadu. Since March 2007,

we have been producing BMW 3 and 5 Series models for the Indian market in Chennai.

We have set a decisive course in India by setting up BMW dealerships of international

standards across the country.

We have set very high standards in service quality and customer care in India.

Our business activities are and will remain focused on the long term. How can we guarantee our future success in light of the changes and new challenges in our business environment? Our Strategy gives us a clear vision for the years to come The main trends that are relevant to our business—such as the demand for mobility and the desire for differentiation—will remain unchanged. In 2009 we have set the course for BMW India with specific projects supporting all four pillars

− Aggressive Product Offensive

− Rapid Market Expansion

− Competency enhancement

− And Customer Intimacy

BMW India has embarked on a product offensive in 2009 with the

New BMW 7 Series (in Diesel and Petrol variants)

New BMW 3 Series (in Diesel and Petrol variants)

BMW X6 (in Diesel and Petrol variants)

BMW X3 xDrive 20d (Diesel variant)

And the new BMW Z4 that will be launched today.

BMW India has prepared an extensive dealer strategy to support its growth plans.

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In Phase 1 of the Dealer Network strategy, BMW India established its presence in 14

locations across India.

BMW India has completed phase 1 of its Dealer Network Strategy in India, much ahead

of the schedule.

Now, as we embark in phase II of the Dealer Network Strategy, BMW India will further

expand operations in India by establishing its presence in 10 more cities across India.

As of today we have 16 BMW facilities in India.

We have heavily invested in training and development of our associates at BMW India,

BMW Plant Chennai and the BMW India dealerships across the country and we will

continue to do so.

With our enhanced product portfolio we will engage in innovative dialogues with our

customers and prospects across the country to ensure that the brand affinity transforms

into product ownership.

Last month BMW Group introduced BMW Financial Services as a new business entity in

India.

BMW Financial Services India will be a 100% subsidiary of BMW Group which is

headquartered in Munich, Germany

The new subsidiary is planned to be fully operational by the mid of 2010 and will be

headquartered in Gurgaon (National Capital Region)

BMW Financial Services India is seeking a license to operate as a Non-Banking Finance

Company (NBFC) in India to offer solutions for Retail automobile financing for BMW

customers and multi make customers, Financing for Fleet Owners and Commercial

Financing for BMW Dealerships and multi make dealerships.

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BMW Financial Services India will continue to offer Insurance solutions to its customers

through its cooperation partner

BMW Financial Services has been successfully operating in India as a part of BMW India

with its three business lines: Retail finance, Commercial finance for the BMW India

Dealerships and Insurance solutions through cooperation partners for BMW customers.

Ladies and Gentlemen,

Now let us now focus our attention on the BMW Z4, the latest jewel in our crown.

Today BMW makes its debut in the roadster segment in India with the launch of the new

BMW Z4.

Modern, Emotional, Authentic. The new BMW Z4 offers a pure driving experience that

sets the pulse racing, resulting in an unforgettable roadster experience that none of its

rivals can match.

The BMW Z4 outlines an expression of joy which epitomizes the qualities of the BMW

brand by combining the ultimate driving experience with maximum sporting potential and

distinctive design.

More than anything the new BMW Z4 is an expression of sheer driving pleasure. With

the new BMW Z4, we want to reach out to new target groups in India who appreciate a

pure driving experience, high standards of elegance and value, and suitability for

everyday driving and comfort.

The new BMW Z4 represents the re-birth of the roadster – powerful and stylish with a

modern interpretation. It is the only vehicle in this segment to combine classic roadster

proportions with a seating position close to the rear axle, rear-wheel drive and a fully-

automatic retractable hardtop.

Driving with the roof down, this two-seater offers a refreshingly intense experience of the

sunshine and the wind rushing by – and driving with the hardtop closed, it provides all

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the comfort of a Premium Sports Coupé. The appeal of this two-seater lies in its unique

combination of elegance, agility, and supreme comfort.

The contemporary styling of the new BMW Z4 Roadster, with its flattened, athletic-

looking rear, wide track and flared wheel arches ensures the car is immediately

recognizable on the road, and emphasizes its power.

The long bonnet slopes slightly downwards to the upright kidney grille, giving it a

dynamic sense of purpose even when stationary. The styling of the new BMW Z4

Roadster is a visual expression of what the car is capable of – which is just how a

roadster should be.

With a long bonnet, low, set-back seating position and low belt line, the new BMW Z4 is

the only car to combine classic roadster proportions with a retractable hardtop. When the

roof is up, its coupé-style lines and the unmistakable BMW Hofmeister knick give the

new BMW Z4 Roadster an elegant look. When it is down, the hardtop integrates

seamlessly into the flattened, gently sloping rear, so you’d hardly know it’s even there.

The six-cylinder in-line petrol engine has a capacity of three litres, and features Twin

Turbo technology, High Precision Injection and an all-aluminium crankcase.

The BMW Z4 sDrive35i has a newly developed seven-speed sports automatic

transmission, featuring double-clutch technology with which it accelerates to 100 km/h

within just 5.1 seconds with a maximum output of 225 kW/306 hp at 5,800 rpm. This

supreme performance then continues all the way to 250 km/h where the speed of the car

is limited by electronic control.

The new BMW Z4 will be available in the petrol variant – BMW Z4 sDrive35i – and will be

available across India at an ex-showroom price of INR 59,00,000 (Ex-showroom price

excludes RTO registration charges, tax, insurance, handling charges; Octroi and entry tax

if applicable).

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Once again, I would like to reiterate that the new BMW Z4 is the only vehicle on the

market today that fully embodies the roadster concept while offering strikingly stylish

design.

The new BMW Z4 will deliver unheard-of level of comfort and functionality for a vehicle of

this class, creating a dream car that combines a high level of practicality with a driving

experience which no competitor even comes close to.

Thank you.

If you have any queries, please contact:

Corporate Communications Abhay Dange, General Manager Press and Corporate Affairs Cell: +91 9910481013 Tel: + 91 124 4566 600 Fax: + 91 124 4566 612, Email: Abhay.Dange@bmw.in Poonam Thakur, Vox Public Relations Cell: +91 9818130538, Tel: + 91 11 4061 3001, Fax: + 91 11 4016 3011, Email: PoonamT@voxpr.co.in Internet: www.bmw.in