BMW Group steps up its activities in India

BMW Group steps up its activities in India

Expands production capacity and dealer network

Munich / Delhi. The BMW Group is strengthening its commitment in the growth market of India. As a first step, local production capacity at the BMW plant in Chennai has been increased from 3,000 to 5,400 units and the dealer network further expanded.

India is a market that holds great potential for the future for us and is a building block in our global market offensive. Our success so far has proved that our production-follows-the-market strategy, which has already been successful in markets such as the US and China, is the right approach, said Frank-Peter Arndt, member of the Board of Management of BMW AG, responsible for Production. At the same time as we are expanding capacity, we will also be gearing the plant to produce a further model for the Indian market, the X1, starting in November 2010 and thereby opening up new customer segments.

In addition to strengthening capacity, a new vehicle logistics centre will also be set up on the grounds of the Chennai plant, for which land has already been acquired. By mid-2012, the BMW Group will have invested a total of EUR 30 million in India since launching production there in 2007.

At the same time, BMW is also stepping up its local sales and marketing activities. To meet rising customer demand for BMW vehicles and services, its sales network will be systematically expanded to 22 dealerships by 2011 almost doubling its size since early 2009. Towards the end of this year, BMW Financial Services will also begin offering its financial services in the Indian market for the first time.

In the first eight months of this year alone, BMW sales in India climbed 43% to reach a total of 3,301 units. This means that the BMW Group has already sold almost as many vehicles in India this year as in the whole of 2009.

The ongoing expansion of our dealer network means that we will be present in all major regions of India and able to reach more than 95 percent of our potential buyers, according to Andreas Schaaf, president of BMW Groups Indian subsidiary. Having taken the lead in the premium segment for the first time last year, we aim to maintain our leading position this year with the market launch of the new 5 Series. We are also confident that we will be able to increase sales substantially over the coming years.

The BMW Group has been actively involved in India through its own sales company since 2006 and has been able to increase annual sales more than tenfold, to 3,619 units between 2006 and 2009. Since March 2007, BMW has also had its own production in India, at its Chennai plant in the state of Tamil Nadu, which builds the BMW 3 Series and 5 Series for the Indian market.

For questions, please contact:

Corporate Communications

Daniel Kammerer, Technology Communications, Production Network
Telephone: +49-89-382-25506, Fax: +49-89-382-28567

Jan Ehlen, Business Communications
Telephone: +49-89-382-28044, Fax: +49-89-382-24418


The BMW Group
The BMW Group is one of the most successful manufacturers of automobiles and motorcycles in the world with its BMW, MINI and Rolls-Royce brands. As a global company, the BMW Group operates 24 production facilities in 13 countries and has a global sales network in more than 140 countries.
The BMW Group achieved a global sales volume of approximately 1.29 million automobiles and over 87,000 motorcycles for the 2009 financial year. The pre-tax profit for 2009 was euro 413 million, revenues totalled euro 50.68 billion. At 31 December 2009, the company employed a global workforce of approximately 96,000 employees.
The success of the BMW Group has always been built on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industry leader in the Dow Jones Sustainability Indexes for the last six years.

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