BMW India to invest Rs 390 crore
BMW India that rolled out the updated 5-Series yesterday at Rs 46.9 lakh (ex-showroom, Delhi) has shared its investment plans in front of the media. The company is planning to invest over 3.9 billion Rupees to expand the production capacity at its Chennai plant. Speaking at the launch company's official said that BMW's second plant in India is already commissioned, while the production capacity in Chennai plant will increase by the end of this year.
BMW currently assembles its seven models at its Chennai plant including the 1-Series, 3-Series, 5-Series, 7-Series and X1 models. BMW that announced to invest Rs 180 crore has now announced over two-fold increase on the manufacturing plant, taking it to Rs 390 crore. BMW India has also ramped up the production capacity at its plant to 14,000 units annually from 11,000 units earlier.
Previous month, BMW rolled out the 1 Series, which is by far the most affordable product in the company's line-up. Speaking on the slowdown in the Indian auto industry, BMW Group India President Philipp von Sahr said that the lower consumer sentiment has also affected BMW sales.
"During the course of the current year, lack of consumer confidence has led to a lack of customer interest in buying new vehicles. BMW also felt strong pressure from the start of this year," Sahr said.
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