BMW has been competing head on with Mercedes Benz for being the top luxury car seller in India. BMW has seen a growth of about 80% in India last year. Its not hard to locate a BMW on Indian roads, these days. Keeping in mind the growth numbers, BMW India is planning a new assembly plant in India by 2015.
Mr Frank-Peter Arndt, Member of the Board, Production, BMW Group quoted:
If we see similar growth as last year for the next few years, we could need a new plant by the middle of the decade. We will look at all possibilities, including full manufacturing and not only CKDs. By 2020, we could possibly be selling more than 40,000 units. However, it is not feasible to make an engine plant in India.
The current Chennai facility’s production capacity has been enhanced through a second shift but it would certainly not be able to keep itself abreast with the increasing demands. The company has a small piece of unused land near the Chennai plant which would be insufficient for the new plant and so it will search for a new location.
Possible reasons for this facility emerge out of the company’s plans of introducing BMW Mini into the market as well as the localization of new models. According to the company’s board member and incharge of global production Frank-Peter Arndt said, ”With the second plant proposed to be set up after 2015, the company will consider shifting from assembling cars to full-scale manufacturing”
While the BMW X1 is already being assembled, the upcoming BMW X3 will reach the assembling lines soon June 2011 and we expect more such aggressive approach in the future from the brand. And as mentioned by the above official, the company will enter full fledged manufacturing in the next few years and with a recent investment of Є11.6 million, conditions are likely to get changed for the brand soon.
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