BMW Increases Production in India

Promising at least just as much potential as the Chinese market, India is slowly becoming the new focus of carmakers who have some type of operation in the country. In BMW's case, the attention it plans on giving India will take the shape of an increased production capacity and a strengthened dealership network.

The German manufacturer announced this week that its plant in Chennai will begin spitting out 5,400 vehicles instead of the current 3,000. The increase is backed by a 43 percent increase in sales this year, reaching a number which is already higher than during the entire 2009 (3,301 units). The plant will also begin producing the X1 for the local market, starting this November

To support the increase in production, BMW will expand its sales network by targeting a total number of stores of 22 by the year 2011, double the size of the network in place last year. The dealerships will begin offering their customers financing through BMW Financial Services for the first time.

“India is a market that holds great potential for the future for us and is a building block in our global market offensive. Our success so far has proved that our ‘production-follows-the-market’ strategy, which has already been successful in markets such as the US and China, is the right approach,” said Frank-Peter Arndt, member of the board for Production.

In addition to all these measures, BMW will be setting up a new vehicle logistics center at the plant's location. With its opening, the carmaker will have invested EUR30 million ($39 million) in India since launching production there in 2007.