German luxury car manufacturer BMW has declared it has increased production capacity of its Indian unit to 5,400 units a year and will invest another Rs 70 crore by 2012.
The company’s fully-owned associate BMW India has a production unit in Chennai, having a current annual production ability of 3000 units prior to this addition.
Till date the company has invested Rs 110 crore (Rs 1.1 billion) at the unit.
BMW AG board member Frank-Peter Arndt said, “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 new investment of Rs 70 crore (Rs 700 million) will go towards adding extra capacity exceeding 5,400 units annually but did not clarify the actual number.
BMW India is also intending to raise its manpower strength to 400 by this year end from 200 presently.
Arndt added, “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”.
The company has introduced its new sports utility vehicle X5 in petrol and diesel models in India, costing between Rs 52.99 lakhs (Rs 5.29 million) and Rs 69.50 lakhs (Rs 6.95 million).
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