Chennai: Luxury car manufacturer BMW India Pvt Ltd says it expects to break even this year.

In March 2007 at the inauguration of its €20 million, 1,700 capacity per annum plant at Mahindra World City near Chennai, the car maker had estimated its breakeven point at 2,500 units.

The plant rolls out the company's 3 series and 5 series models.

With buoyant sales last year, BMW India has expanded its capacity by 1,300 units to 3,000 units per annum on a single shift at an additional investment of Rs3 crore.

According to Peter Kronschnabl, president, the year 2007 was satisfactory as the company sold 1,387 vehicles exceeding the initial target of 1,000 vehicles.

BMW India sold 743 units of 3 series, 320 units of 5 series, 251 units of 7 series and balance a mix of 6 series, X3 and X5 models. For 2008 the target is 2,000 units."

With a sales target of 2,000 units for 2008 Kronschnabl says, "If everything goes well then we are hopeful of breaking even ahead of our earlier target. We have good line up of products. We will not be standing still in 2008" he says.

This year BMW India is beefing up its product offering by adding BMW M3 coupe, BMW M5 sedan, BMW M6 coupe, BMW M6 convertible, BMW X5 4.8i, BMW 6 series individual and BMW 7 series individual, in addition to is existing range like BMW 3, 5, 6, 7 and X series.

In an exclusive interview to domain-b at the 9th Delhi Auto Show, Kronschnabl said that BMW saw good potential for the luxury segment in which it operates.

Citing independent research, he said the luxury market will grow to 10,000 units per annum by 2012, from 4,500 units approximately in 2007. "I would believe that  the 10,000 units we can break in 2010." (View domain-b's exclusive video interview with Peter Kronschnabl)

Referring to the launch of several new models by its competitors in the luxury car segment, Kronschnabl said BMW India was prepared to face the forthcoming competition.

"We are the segment leaders worldwide and we want to become the number one in India too," he adds.

According to him the company is in the process of completing its feasibility study on introducing Mini in India.

BMW India imports most of the components to roll out its vehicles at its Indian plant.

Queried about the localisation plans he says, "We have localised seats and door panels."

Speaking about the performance of the BMW Financial Services he says, nearly 40 per cent of the vehicles sold by the company last year were financed by the sister unit.

Apart from exceeding its sales target in 2007, BMW India is also going ahead of the target in terms of appointing dealers.

Currently having 9 dealers the company plans to appoint three more in Ahmedabad, Kolkata and Cochin.

"The earlier plan was to have 12 dealers by 2009 and the targeted number would be reached a year before," remarks Kronschnabl.