The Hindu Business Line : BMW's Chennai plant to roll out 3 and 5 Series

THE BMW Group will produce the BMW 3 Series and 5 Series saloons from its first assembly unit in India, coming up near Chennai and due to be commissioned by 2007.

The premium carmaker has set up a sales subsidiary in Delhi and is actively expanding its dealership network in metros across the country.

The company views the opening up of the Indian market as an important step in its expansion plans in Asia. "The Indian automobile market offers significant growth potential in the long term. With our increased presence there, we will be well positioned to fully tap into this potential," Mr Helmut Panke, Chairman of the Board of Management, BMW AG, said.

The company targets annual sales of 1.5 lakh units of BMW, MINI and Rolls-Royce cars in the Asian markets by 2008. In fiscal 2004, the company sold 95,482 automobiles in this region.

The production and sales subsidiary in India will be 100 per cent owned by the BMW Group, which will commence operations in 2007. Initial investments in India total 20 million euros (approximately Rs 110 crore). The BMW 3 Series and 5 Series saloonsproduction is intended solely for the local market.

In the medium term, the company will employ around 200 people in India, and up to 600 additional jobs will be created in the dealer and service network, a company statement said.

Currently, two intermediary dealers with three outlets represent the BMW Group in the Indian market.

In the 2004 financial year, it delivered 122 vehicles and in the first half of 2005, it delivered 100.

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