BMW ups investment to Rs 490 crore in India

BMW had earlier announced that it had increased the localisation of its vehicles by up to 50 per cent in the country by sourcing different components of its cars from various Indian manufacturers. The company has now revealed that it has increased its cumulative investment in India from Rs 390 crore to Rs 490 crore, most of which will be routed to its plant in Chennai.

The remaining amount will be invested in training programmes for both the current and potential employees. The training facility in Gurgaon has a capacity to train 18,000 members, and the carmaker states that personnel will be skilled according to the needs of the company.

BMW claims that its plant in Chennai has a capacity to produce 14,000 vehicles per year and that about 95 per cent of its cars sold in India are produced in Chennai. The Bavarian carmaker currently assembles eight models at its Chennai plant which include the BMW 7-Series, 5-Series and 3-Series sedans. The company further states that the current capacity utilisation at its plant is at about 60-75 per cent which it plans to boost in the future in line with the demand for its vehicles.

The luxury carmaker also plans to introduce 15 new models in the country this year. BMW also aims to increase its dealership network in the country to 50 with a focus on tier-2 cities.