Pune-based Force Motors has formally inaugurated a Rs. 200-crore facility at Singaperumalkoil that will manufacture and test engines for the German luxury carmaker BMW.
Located at Mahindra World City, about 55 km from here, the unit is the first independent plant of BMW Group that assembles and test engines.
"The investment in the Chennai plant is about Rs. 200 crore and it can produce up to 20,000 units premium engines every year. The capacity can be further increased up to 50,000 units," Force Motors Managing Director Prasan Firodia said.
The plant, which was formally inaugurated Union Minister for Heavy Industries Anant Geete, has been operational since January and already supplied about 3,000 units, the company said.
The plant was developed under supervision and guidance from BMW and was according to its "exact global standards".
The plant will also produce gearbox and other products.
Force Motors also assembles engines for various Mercedes Benz models. It can assemble and test engines for all BMW cars and sports utility vehicles made in India.
According to BMW India Managing Director Chennai plant, Robert Frittrang, its facility at Mahindra city has the capacity to produce 14,000 units a year.
"Since 2007, the plant was continuously expanded and produces BMW 1 Series, 3 Series, 5 Series and the flagship 7 Series. Cars locally produced here have up to 50 percent local content," Frittrang said.
The Chennai plant also manufactures X Series SUVs, he said.
After formally unveiling a plaque to commemorate the occasion, Geete said the government has formed a committee to monitor the Automotive Mission Plan 2016-2026.
"This mission would focus on the migrating to fuel efficient engines...," he said.
Noting that the ministry has taken up "significant steps" in promoting electric and hybrid vehicles, he said "electric and hybrid industry is expected to reach seven million vehicles by 2020."
Force Motors already has two plants in India. Its small commercial vehicles and tractors are rolled out from the facility at Pune, while others such as SUVs, MUVs and other commercial vehicles are produced from Pithampur in Madhya Pradesh.