BMW India says it will pump in more investment into India and announced capacity expansion with more models as its market share grows.
“We are increasing production capacity at our Chennai plant from 3,000 to 5,000 units,” BMW India president Andreas Schaaf said at the launch of the BMW 5 series in the Indian market.
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As well as capacity expansion, BMW is also gearing up to produce the X1 model at the Chennai plant by November 2010. BMW says it intends to grow its product portfolio in 2010-11.
In the first eight months of 2010, BMW India’s sales have already risen 43% to reach a total of 3,301 units, surpassing previous sales in just eight months.
“Our sales would likely jump by 40% in 2010,” admitted Schaaf, adding: “Entry into the Indian market is regarded as the most successful market entry for BMW in any country in recent years.”
As well as strengthening capacity, a new vehicle logistics centre will also be set up on the grounds of the Chennai plant. ‘We have already acquired 40 acres of land for the proposed centre,’ said Schaaf.
By mid 2012, the BMW Group will have invested a total of EUR 30m in India since starting production in 2007.
To meet rising sales, BMW will increase its dealer network to 22 by 2011 doubling its size since early 2009.
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By GlobalDataBy the end of 2010, BMW India will shift the existing BMW studio in New Delhi to a bigger venue.
The luxury car maker will also foray into the pre-owned car business with the launch of BMW Premium Selection by the end of 2010 with showrooms in Gurgaon, Mumbai & Chennai. It will also introduce BMW Financial Services India by 2010.
The Chennai plant produces the BMW 3 series and BMW 5 series sedans in petrol & diesel versions. By the end of 2010, the new BMW X1 will also be produced at the Chennai plant.
