India’s First BMW Plant Inaugurated

The first BMW factory constructed in India was officially inaugurated on March 29. Norbert Reithofer, BMW AG executive board chairman, was present at the Chennai facility for the occasion, and inspected a number of 3 Series saloons built at the factory since production began in February.

According to Reithofer, BMW expects to sell more than 1,000 cars in India during 2007 and has a medium term sales goal of 1,500 vehicles. In addition to the 3 Series the new factory will also produce the larger 5 Series, commencing in May. All cars rolling of the assembly line in Chennai are destined for the Indian market.

“Particularly in the premium automobile segment, India offers big opportunities for growth. Opening this plant underpins our long-term route to profitable growth,” Reithofer stated during the official opening ceremony. Peter Kronschnabi, president of BMW-India, echoed these sentiments, saying the company has long-term investment plans in the subcontinent. “India is a market with high potential for the future. We believe in India, therefore we also set up a 100 per cent BMW subsidiary in India,” he said, adding that BMW have invested 20 million euros setting up the factory’s initial capacity of 1,700 units annually in a one-shift operation.

The Chennai plant is located approximately 30 miles north-west of the city of Chennai (formerly Madras) and covers a total area of 89,000 m², with a production area of 13,000m². The facility employs 120 local workers, most of who have prior work experience in the automotive industry.