German luxury car maker BMW has hiked the production capacity at its Indian facility to 5,400 units per annum and will make a fresh investment of INR 70 crore by 2012.
The company’s wholly owned subsidiary BMW India has a manufacturing facility in Chennai which now has an installed annual production capacity of 3,000 units. The company has so far invested INR 110 crore in the plant.
Mr Frank Peter Arndt board member of BMW AG told reporters that “India is a market that holds great potential for the future for us and is a building block in our global market offensive.’’
The company said that fresh investment of INR 70 crore will be for adding additional capacity over and above 5,400 units per annum but did not specify by how much it will go up by 2012.
BMW India is also planning to hike its manpower strength to 400 from 200 by the end of this year.
Mr Arndt said that “At the same time as we are expanding capacity, we will also be gearing the plant to produce a further model, XI, for the Indian market, starting in November 2010 and thereby opening up new customer segment.’’
Meanwhile, the company has launched its new sports utility vehicle X5 in both petrol and diesel variants in India, priced between INR 5.299 million and INR 6.950 million.
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