BMW Group to have its second plant in India

Mumbai: The BMW Group may set up a second plant in India by 2015, if the demand for luxury cars in the country continues to grow as was seen in 2010.

The company currently has an assembly plant in Chennai where it has raised the annual capacity to 10,000 units (from 8,000 units) this month. The company is also increasing its investments to euro30 million in 2011 and 2012, from the current euro17 million.

If similar growth as last year for the next few years is seen, company could need a new plant by the middle of the decade.

The company would look at all possibilities, including full manufacturing and not only CKDs. By 2020, they could possibly be selling more than 40,000 units.

However, it is not feasible to make an engine plant in India.

At present, BMW has 25 plants worldwide (including motorbikes), of which only eight manufacture cars while the rest assemble from CKDs.

The company has land available at Chennai, where it may first look to put a second assembly line. The current plant can't take another assembly line.