To Chennai with love is BMW mantra

Luxury sportscar major opens plant in Chennai, Tamilnadu.

BY OUR AUTO CORRESPONDENT

March 29, 2007: M Karunanidhi must be a happy man. Close on the heels of the mega Renault-Nissan-Mahindra venture setting shop on Tamil Nadu soil, it is now the turn of none other than BMW to roll in.

The car giant has unveiled its assembly plant at Chengalpattu, 40 km south of Chennai. With India promising to offer unique opportunities for growth in the premium automobile segment, the company has set up the plant with a capacity of 1,700 vehicles a year.

The automobile behemoth which has a distribution network of as many as 12 dealers in cities such as Mumbai, New Delhi, Chennai and Hyderabad, also has lined up an expansion on that front. Reports quoting sources aid that the dealership network will double by this year end. The idea is to grab all opportunities that arise for BMW’s three automotive brands.The brands being BMW, MINI and Rolls-Royce, the report added.

On the pricing front, BMW officials said that the lowest priced 3- Series vehicle will cost Rs 2.6 million, while the higher range would cost up to Rs 4.2 million.

Significantly, India makes only the seats of the cars, while the remaining parts are imported. As per the new plan, BMW will manufacture the doors of the cars India and it will not export its Indian products.

Chennai is indeed turning hot on the auto front. It is only a matter of time before more Tamil Nadu cities also roll out the red carpet for global majors.