BMW to invest another Rs 70 crore in Indian operations
The German luxury car maker, BMW intends to invest a sum of Rs 70 crore in its operations in India. The group which has got its production plant in Chennai has stated that it would begin to produce new variants soon from its plant and it will create twelve hundred jobs both directly and indirectly. Mr Andreas Schaaf president of BMW India, the hundred percent subsidiary of BMW Group, stated that it had spent Rs 110 crore till the month of September. This will be raised to Rs 180 crore by the end of the year 2012. The company started the production in the year 2007 from the Chennai plant. The plant is into the production of BMW 5 series and BMW 3 Series sedans in diesel and petrol variants. Also, the plant will begin producing the BMW X1 by the end of year 2010.
Schaaf further added that at present, the Chennai plant of the company has the ability of producing 5,400 units every year and that too on a single shift. The plant is also likely to recruit around four hundred people by the end of the year 2010. By the year 2012, over 1,200 jobs will be generated in the dealer as well as service network. Mr Frank-Peter Arndt, member of the Board of Management of BMW AG responsible for production commented that India is a market which has got a huge potential for the future for them and is a strong building block in their global market offensive. So far, their success has indicated that their production-follows-the-market strategy has already been quite successful in the US and Chinese market and this is also the correct approach.
Schaff also commented that at the similar time, the company is extending its capacity. The company will also be readying the plant for the production of another model for the auto market of Indian. This further product will be the BMW X1 and its production is likely to begin in the month of November. This in turn will open ways for new customer segments. Apart from strengthening the capacity, a new centre for vehicle logistics will also be established on the concept of the Chennai plant. The land for the same has already been taken. Also, during the year 2011, BMW India will extend its dealer network by raising the number of outlets to twenty two major metropolitan centres, from the present number of 18.
