In a bid to strengthen its Indian operations, the BMW Group has increased the local production capacity at its Chennai plant from 3,000 to 5,400 units, as its sales crossed 3,000 in the first
"India is a market that holds great potential for the future for us and is a building block in our global market offensive," says Frank-Peter Arndt, member of the board of management of BMW AG, responsible for production.
Arndt says, "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,"
He added that production for a new model for the Indian markets, X1 will commence starting November at the plant, thereby opening up new customer segments.
The German auto-maker will also set up a new vehicle logistics centre on the grounds of the Chennai plant. By the end of 2010, BMW Financial Services will also begin offering financial services in the Indian market for the first time.
Besides the increased capacity, BMW is also stepping up its sales and marketing in the country; it is nearly doubling its sales network from what it had in early 2009.