BMW India to expand its manufacturing capacity

BMW India is planning to expand its business in the country by enhancing its manufacturing capacity at its Chennai based plant. The company is aiming to sell more then 4,000 units in India in year 2010. Commenting on this targeted figure, Mr Peter Kronschnabl, BMW India President said that, In 2010, we aim to achieve double digit growth. In absolute numbers we want to achieve sales of over 4,000 units.

BMW India replaced Mercedes Benz as the top luxury car selling company in the country, last year, with selling 3,619 units as compare to the 3,247 units of Mercedes Benz. After three and half years in the Indian market we have done reasonably well. Today we have a 41 per cent share in the Indian premium segment market against 9 per cent in 2006 when we started our operations, Mr Kronschnabl added.

As the demand of the luxury cars has increased by a good margin in the country, it has become difficult for the company to catch up with the rising demand with the existing manufacturing capacity. So the company has decided to increase its capacity from existing 3000 units per year.

The company managed to sell 709 units in last two months, accounted for an increase of 38 percent. The company is planning to increase total number of head counts at its Chennai plant by 30 percent from existing staff of 160 people.