BMW To Begin Production In India

German luxury carmaker BMW on Thursday announced that it would begin production of cars in India by the early next year and hopes to sell up to 1,000 units in the first year of operations. The company would only produce its `3' and `5' series models during the first phase of its operations in India.

BMW was investing 20 million (approx Rs 110 crore) for setting up its plant near Chennai, which would have an initial production capacity of 1,700 units per annum on a one-shift basis.

While deliveries of the 3 series cars would start by February-March, the locally produced `5' series models would be available by May-June.

"The first car will be delivered to our dealers by March next year and we hope to have dealerships across all the major metro cities by 2009," the BMW India President, Peter Kronschnabl, said at the company's headquarters in Gurgaon.