BMW 5 Series' 523i model has now been phased out to make way for BMW 520i. BMW is the biggest player in the Indian luxury car market. This has a lot to do with innovation, sleek designs and the fact that the models are priced well against competing models from other auto manufacturers. BMW 520i is expected to be priced at about Rs. 40 Lakhs.
The BMW 520i will have a 2 L four cylinder petrol engine against 523i's 2.5 L six cylinder engine. The 2 litre engine generates power of about 184 bhp. The peak torque value is 270 Nm. Speculation is rife that the same engine will find place in the BMW 3 series models as well. The use of same petrol engine in the 5 series and 3 series models brings efficiency into the process of assembling of the cars in India. BMW assembles the car in India from completely knocked down units.
The entry level diesel variant of the 5 series model remains the preferred alternative for those buying a BMW 5 Series sedan in India but the low price of a 5 Series petrol variant in the form of the new 520i model may help the car manufacturer gain significantly in terms of increase in sales of BMW 5 Series models against those from the BMW 3 Series.
BMW replaced Mercedes as the luxury car maker with the largest market share in India and subsequently Mercedes Benz had to move to the third spot owing to the rise of Audi in the segment. As Audi continues to expand on its product line in India and the popularity of its models continues to rise, it is only expected that BMW and Mercedes Benz take steps to ward off the competition. While BMW is keen on expanding its market share in the Indian car market, Mercedes Benz needs to get its act together to regain its position as the preferred luxury car brand in India.