BMW Group Thailand introduces the latest three models of its flex-fuel car: the 318i, and the 325i Sport, and the 730Li, at the undercut prices of at least 100,000 baht from its diesel counterparts.

The campaign launches in response to Japanese aggressive invasion into the luxury car market territory.

BMW said prices cut comes from the excise tax privilege package which down to 25 percent from currently 30 percent for flex-fuel vehicle that run on the E80 and E85 ethanol.

BMW Thailand’s president Karl Rudiger said receiving the new tax privilege has enabled the carmaker to prices it 318i model as low as 2.229 million baht, while the 730Li was 500,000 baht cheaper than its competitors at 7.299 million baht.

“Flex-fuel vehicles allow us to expand market reach into our competitors’ niches,” Mr. Rudiger said—referring to Toyota Camry, Honda Accord, and Nissan Teana.

Around 60 percent of BMW vehicle fleet marketing in the kingdom annually is the diesel engine version. The automaker expects to shift a portion more to the gas engine version in the future.

BMW reported it sold 400 vehicles during the first two months of the year, or up more than double from the same period a year ago.

Mr. Rudiger predicts that the company’s annual sale would increase in double digit for 2010.

For the motor show exhibition in Bangna, BMW plans to launch a trade-in package that would offer its customer as much as 350 thousand baht for vehicle with market value of at least 400 thousand baht.

More attractive package would be interest-free campaign for 60 months installment payment period.