BMW has decided to establish its second facility in the India.

German premium car manufacturer is amplifying capacitance at its existing plant in Chennai and has currently hit 10,000 units yearly production capacitance.

BMW's directors said even after construction at its Chennai facility is further heightened via a second move of operations this year, it will need extra capacity.

BMW declared that it had strengthened its capacitance at Chennai plant to produce 5,400 units annually as against 3,000 units previously.

Luxury car manufacturer will make a total investment of Rs 70 crore in order to increase capacitance even further by the next two years (2012).

Thus far, the company has invested around Rs 110 crore in its Chennai facility.

The company refused to specify by how much the capacity would go up by 2012.

BMW, the German luxury carmaker, has been ruling the Indian luxury car segment in India.

BMW has recorded a 14% increase in the sales during the first seven months of the year.

BMW India had sold around 2,008 cars in the first seven months period of the year as against 1,763 cars in the same period last year.

This helps BMW to hold the top position in the high-end segment.