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.

Frank–Peter Arndt, member of the Board of Management of BMW AG, stated, “India is a market that holds great potential for us and is a building block in our global market offensive.”

“At the same time as we are expanding capacity, we will also be gearing the plant to produce a further model, XI, for the Indian market, starting in November 2010 and thereby opening up new customer segment,” Arndt added.

To back up functioning in the Indian market, BMW would double up its manpower to around 400 from the current 200 by 2010 end.

Present, the company’s 3-Series and 5-Series are fabricated at its Chennai plant.

It is also looking at amplifying its dealership network to 22 by 2011 from the subsisting 18.

With the introduction of BMW Premium Selection, the company has also plans for a pre-owned car biz by 2010 end.

Moreover, the company would, for the first time, start pre-owned car showrooms in Gurgaon, Mumbai and Chennai.

While answering a question regarding the company's plans for the two-wheeler segment in India, BMW India President Andreas Schaaf stated, "We will decide in a couple of weeks whether it makes sense to enter the market or not... In a month's time, the announcement will be made."