BMW to decide on capacity expansion in 2011 | autos | Hindustan Times
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BMW to decide on capacity expansion in 2011

autos Updated: Aug 23, 2009 13:36 IST

German luxury car maker BMW will consider increasing the production capacity of its Indian manufacturing facility in 2011, only after the sales from the plant crosses the 3,000-units mark next year.

"If the market grows, we are ready to ramp up production and will consider further investment. At present, our capacity is sufficient to meet the demand till next year," BMW India President Peter Kronschnabl told PTI.

BMW India, the wholly-owned subsidiary of BMW Group, has a manufacturing facility in Chennai with an annual capacity of 3,000 units in single shift.

Kronschnabl said the company is expecting its total sales (including imported models) to cross 3,000 units within this year, of which about 75 per cent is likely to come from the two models- 3-Series and 5-Series, assembled in Chennai.

"As the trend indicates, we will be able to sell 3,000 units of 3-Series and 5-Series cars in 2010. After that we will have to consider capacity expansion," he added.

Besides these two luxury sedans, the company also sells 6-Series and 7-Series in the luxury segment, X3, X5 and X6 in sports utility segment and M3, M5 and M6 in the convertible sports coupe category as completely-built-units (CBU) in India.

The Indian luxury car market, which stood at 7,400 units last year, is expected to grow to about 9,000 units this year to touch the 10,000-mark in 2010, Kronschnabl said.