BMW India looks at new expansion plan

The German car giant BMW is polishing its mind about the increase in the production capacity in its Indian unit. The proposal may get effect once the sales hit the 3000 units by next year. As of now, the company is contented with its capacity and is crucially monitoring the market trend. If the market encourages, BMW has no hesitation to enhance its production capacity. This target of 3000 units is inclusive of import models especially 3-series and 5-series both assembled in Chennai unit.

The company is optimistic about disposing the 3000 units by 2010. These models are in addition to 6-series and 7-series in the luxury segment, X3, X5 and X6 in suv, M3, M5 and M6 in the coupe sector. The overall growth in the Indian luxury car segment is expected to be 9000 next year from its 7400 units now (it is estimated that this figure may cross 10000 by 2011). Given the positive sign, the company is planning to introduce two-seater roadster-Z4 (Rs50-60lakh) for this festival of Deepavali and another one on the eve of New Year. A new blitz is up in the sleeves for the ensuing Delhi Auto Expo. Only exception, as of now, is the mini car which may take more time to reach India for its cost factor. Clouds still hang over the sourcing business and no clear picture is derived now. BMW has got some good track record in its sales in last year – an increase of 14% for the period of January-July 2008 (1783 units in the similar period of the previous year).

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