BMW to make 3 Series and 5 Series in Chennai in India
The famous German marquee BMW (Bayerische Motoren Werke AG) would now be made in India! The company is reported to be planning to manufacture their 3-Series and 5-Series automobiles at its proposed assembly unit near Chennai in Tamil Nadu. The company would be bringing the kits for these cars in CKD (completely knocked down) form from Germany via the Chennai Port.
BMW is reported to have located a 22-acre site in the Mahindra Industrial Park in Maraimalai Nagar, 40 km from here, to set up an assembly unit. Stefan Krause, Member of the Board of Management and CFO of BMW was speaking to a news media agency: “We are still awaiting a final approval for CKD productionâ€. The initial investment alone is said to be in the region of Rs. 106 crore.
However, the decision is yet to be finalized. However, they have made it clear that they would require sales of at least 1000 vehicles a year to make the investment justifiable. If they indeed go ahead with the planned venture, they would generate 160 direct jobs across various layers and 320 indirect jobs. BMW is likely to bring both petrol and diesel variants of these cars to the Indian roads.
BMW already has a minor presence in the Indian marker and they sold around 122 imported cars in India in 2004. This year alone they have sold more than 150 units of BMWs in the Indian market. They face competition from Mercedes and Audi in the premium automobile segment.