BMW Group to start Indian manufacturing operations in 2007

New Delhi: Advancing its international market strategy, the BMW Group (2004 revenues: €44,335 million; net profit €2,222 million) has announced its formal entry into India. It will set up a production and sales subsidiary and build an assembly plant for BMW automobiles in Chennai in southern India and expanding its dealership network to all metropolitan centres of the country.

The opening up of the Indian market is an important step in the company''s expansion plans in Asia. "The Indian automobile market offers significant growth potential in the long term. With our increased presence there, we will be well positioned to fully tap into this potential." says Helmut Panke, chairman of the board of management of BMW AG. "This marks a further important step in our Asia strategy."

The company is targeting an annual sales volume of 150,000 units of BMW, MINI and Rolls-Royce cars in the Asian markets by 2008. In fiscal 2004, the company sold 95,482 automobiles in Asia.

The production and sales subsidiary will be owned 100 per cent by BMW Group and will commence business operations at the beginning of 2007. Initial investments total 20 million euros. The plant will produce BMW 3 Series and 5 Series saloons solely for the local market.

In addition to operating the assembly plant and importing BMW cars, the subsidiary will also develop dealer organisation, decide on pricing and product strategy as well as marketing and after sales. In the medium term, the company will employ around 200 people in India, up to 600 additional jobs will be created in the dealer and service network.

Currently, two intermediary dealers with three outlets represent the BMW Group in the Indian market. In 2004 financial year, the company delivered 122 BMW vehicles and in the first half of 2005, deliveries totalled 100 automobiles.