BMW's Indian unit to break even this year: Peter Kronschnabl

Venkatachari Jagannathan
11 January 2008

Chennai: Luxury car manufacturer BMW India Pvt Ltd says it expects to break even this year.

In March 2007 at the inauguration of its €20 million, 1,700 capacity per annum plant at Mahindra World City near Chennai, the car maker had estimated its breakeven point at 2,500 units.

The plant rolls out the company's 3 series and 5 series models.

With buoyant sales last year, BMW India has expanded its capacity by 1,300 units to 3,000 units per annum on a single shift at an additional investment of Rs3 crore.

According to Peter Kronschnabl, president, the year 2007 was satisfactory as the company sold 1,387 vehicles exceeding the initial target of 1,000 vehicles.

BMW India sold 743 units of 3 series, 320 units of 5 series, 251 units of 7 series and balance a mix of 6 series, X3 and X5 models. For 2008 the target is 2,000 units."