BMW to setup an assembly unit in India
German auto giant BMW has finally confirmed that they would be setting up an assembly plant in India to cater to their Indian audience. They have set themselves a goal of investing around Rs 1.1 billion and they would be building their plant near Chennai. In addition, they would also be setting up a sales subsidiary in Delhi as they plan to expand their operations in Asia.
The assembly unit would be setup in Maraimalai Nagar and it would be manufacturing BMW 3 series and 5 series saloons. The first of these models are expected to be out in the market by 2007. In addition, they would be establishing their dealerships in all the major cities of India. The company said in a statement: â€œThe production and sales subsidiary will be owned 100 per cent by the BMW Group and will commence business operations at the beginning of 2007â€.
It added: â€œInitial investments total 20 million euros. The plant will produce BMW 3 series and 5 series saloons and the production is intended solely for the local market.â€ BMW also claimed that India forms an important destination for their expansion plans for the Asian market. BMW is expected to employ around 200 people in the country and up to 600 additional jobs would be created in the dealer and service network.