BMW to expand production at Chennai plant

"Our installed capacity at Chennai is 5,400 units per annum in a single shift operation. We may either go for double shift or expand on the new plot which we have acquired near the plant recently," BMW India President Andreas Schaaf said.

He said that till October, the company had sold 4,721 units, compared to 3,600 last year.
"We expect to clock more than 60 per cent growth this year, with sales likely be in the region of 5,000 units to 6,000 units," Schaaf told reporters on the sidelines of the AGM of the Indo-German Chamber of Commerce here last night.

He said the company recorded its highest-ever sales of 750 units in October.
Schaaf said the luxury car market is growing at a fast pace in India.

The total size of the luxury car market was 9,000 units in 2009, which is expected to grow to 15,000 units in 2010. This is expected to grow by 10 times in 10 years' time, Schaaf said.

"India is among the top 10 markets for the BMW Group," he said.
With a 39 per cent share of the luxury car market, BMW India is also gearing up for more launches in the coming year.

So far, the company has invested Rs 1.8 billion in India. Schaaf declined to comment on future investment commitments.

He said the company was also going to expand its dealer network. "We will have around 22 outlets by 2011," he said.

By the end of 2010, BMW India will also launch pre-owned cars in cities like Gurgaon, Mumbai and Chennai.

Recently, the company had launched BMW Financial Services, which will provide customised solutions in auto finance.

Delhi and Mumbai jointly account for 70 per cent of BMW India's sales, he said.