Tag Archives: BMW

BMW India to Intensify Its Luxury Car Segment

German automobile giant BMW has been aiming to expand its luxury car segment in India by 10 times over the next 10 years.

The company has recently launched its X3 vehicle priced between Rs 41.2 lakh and Rs 47.9 lakh.

BMW India President Dr. Andreas Schaaf during the launch of BMW X3 SUV in Pune stated that the luxury car sales in India have been witnessing growth and the company has been expecting a boost in the near future. He said that BMW India has been anticipating 60,000 units’ sale annually by 2021 and soon they will be investing Rs 70 crores to heighten its sales.

Dr. Schaaf announced that their annual production capacity has increased since June as BMW India’s only manufacturing and assembling unit in the country is located in Chennai where the production capacity has increased by
1,000 units.

“We have expanded our production facility by starting the second shift of production. The production has been expanded to 11,000 units annually from 10,000 units”, Dr .Schaaf said.

Also, in March, the company had increased its production capacity from 8, 000 to 10,000 units per year in single move.

Dr. Schaaf added that that if required the company will add another assembly line and will increase the output of the second shift by adding more production.

BMW to improve Chennai plant capacity

German vehicle manufacturer BMW has announced to improve its production capacity at its Chennai plant. BMW India President Peter Kronschnabl has said that Indian auto market is developing remarkably by these years.

For the year 2010, the company is eying to get a double digit growth figure with a minimum sales volume of 4,000 vehicles. Therefore the company is planning to manufacture more from its Chennai plant so that the supply can catch the demand in the market.

Now the BMW Chennai plant has a capacity of 3,000 units per annum. Last year BMW has sold 3,619 units of luxury cars as compared to 3,247 units of its major rival Mercedes.

Kronschnabl has also informed that BMW is having an excellent market share of 41% in the premium segment of cars in India. It was around 9% in 2006. In between these three and half years the firm has performed reasonably good to capture such a commanding market share.

Moreover, he has said that BMW is going to invest more on its plants and working to enhance the capacity and soon there will be an official announcement on this issue.