German luxury car maker BMW will increase its investment in India to Rs.1.8 billion ($40 million) by the end of 2012 and start rolling out the X1-model from its plant near here by the end of this year, a top official said on Wednesday.
The BMW group had set up a car plant near here in 2007 with a capacity to roll out 5,400 units per year. The plant produces the BMW 3 Series, as also the BMW 5 Series sedans in petrol and diesel variants.
By end of 2010, the plant will also start producing the BMW X1, said Andreas Schaaf, the president of India operations.
Apart from the car plant near here, BMW group’s activities in India include a central spare parts warehouse in Mumbai and development of a dealer organisation across major metropolitan centres of the country.
Mr. Schaaf said the company aims to maintain leading position in the Indian market by now embarking on the second wave of India strategy.
“We are confident that we will be able to increase sales substantially over the coming years with new products, now produced in India and the ongoing expansion of our dealer network to reach out to more of our potential buyers,” he said.
The company will also increase the number of dealerships to 22 from the current 18 by 2011. The company rolled out its 10,000th unit on Wednesday.