BMW To Invest Rs. 130 crore In India To Rev Up Operations
car&bike Team
1 min read
Jun 19, 2017, 04:34 PM
Key Highlights
- BMW has invested Rs 1,120 crore in the Indian operations so far
- The new investment will go into BMW group operations
- The BMW 5 series will launch on 29th June 2017
German luxury carmaker BMW is investing another Rs 130 crore in India to enhance operations, taking its total investment in the country to Rs 1,250 crore. The company will launch new version of its locally manufactured 5 Series later this month and 6 Series Gran Turismo (GT) model next year to strengthen its product portfolio in India.
"Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis," BMW India President Vikram Pawah told . BMW has invested Rs 1,120 crore in the Indian operations so far. The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.
With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore. The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.
"Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018," Pawah said. In other emerging towns, in addition to 30 major cities, the company utilises its 'Mobile Studios' to expand the market further. This year, the weather proof BMW mobile studio will cover 50 towns, Pawah said. On new product launches, he said: "As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series."
The BMW 5 series is all set to launch in India on the 29th of June
The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales.
"Next year, we will be introducing another model in between 5 and 7 Series, called the 6 GT and that would again define a new segment and create new market for us," Pawah said.
On local manufacturing, Pawah said: "We are locally producing eight of our total 16 models that are available. So as we introduce new models, also the new 5 Series, will be produced in the Chennai plant."
The 6 GT would also be manufactured locally, he added.
"So all our main volume drivers as we call them will also be produced locally. Niche models will continue to come in CBU form. As the volumes increase we will continue to evaluate as what can manufactured locally," Pawah said.
The company's Chennai plant has an installed capacity of 14,000 units on a single shift basis. It started operations in March 2007 and currently produces BMW's 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series along with SUVs X1, X3 and X5.
When asked about competition with its German rivals Mercedes and Audi to be the number one player in the luxury car market in India, he said BMW's focus is to remain the fastest growing premium car brand in India. In the January-May period this year, BMW has sold 3,533 units in India at a growth of 8 per cent.
Pawah further said the company would be focusing on its power to lead strategy to grow the entire premium car market. "The idea is to grow the segment. Currently in India, premium car segment remains less than 2 per cent of the total passenger vehicle market (3 million last fiscal) as compared to 5-10 per cent in various countries," Pawah said.
The efforts should be to at least make it 5 per cent and and eventually 10 per cent of the PV market, he added.
The premium vehicle segment is estimated to be around 35,000 units per annum currently.
"Since 2007, we have been consistently investing in India. This year, we are going to increase our investment further to up to Rs 1,250 crore on a cumulative basis," BMW India President Vikram Pawah told . BMW has invested Rs 1,120 crore in the Indian operations so far. The new investment will go into BMW group operations, including Motarrad (two-wheeler business) as well as the financial services arm, he added.
With the fresh investments, the total investments on BMW group operations in India will go up to Rs 520 crore and on BMW Financial Services to Rs 730 crore. The company is looking to expand its dealer network in the country. It currently has 18 partners and is present in 30 cities.
"Besides, we have 63 touch points. Out of these, we have 41 sales outlets. So we want to take these 41 outlets to 50 by 2018," Pawah said. In other emerging towns, in addition to 30 major cities, the company utilises its 'Mobile Studios' to expand the market further. This year, the weather proof BMW mobile studio will cover 50 towns, Pawah said. On new product launches, he said: "As part of our power to lead strategy, product offensive starts. In next two weeks, we will be launching the new 5 Series."
The model has played a big role in the success of BMW in India. Since 2007, the company has sold around 66,000 vehicles in India with 5 Series having contributed close to 30 per cent of the total sales.
"Next year, we will be introducing another model in between 5 and 7 Series, called the 6 GT and that would again define a new segment and create new market for us," Pawah said.
On local manufacturing, Pawah said: "We are locally producing eight of our total 16 models that are available. So as we introduce new models, also the new 5 Series, will be produced in the Chennai plant."
The 6 GT would also be manufactured locally, he added.
"So all our main volume drivers as we call them will also be produced locally. Niche models will continue to come in CBU form. As the volumes increase we will continue to evaluate as what can manufactured locally," Pawah said.
The company's Chennai plant has an installed capacity of 14,000 units on a single shift basis. It started operations in March 2007 and currently produces BMW's 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series along with SUVs X1, X3 and X5.
When asked about competition with its German rivals Mercedes and Audi to be the number one player in the luxury car market in India, he said BMW's focus is to remain the fastest growing premium car brand in India. In the January-May period this year, BMW has sold 3,533 units in India at a growth of 8 per cent.
Pawah further said the company would be focusing on its power to lead strategy to grow the entire premium car market. "The idea is to grow the segment. Currently in India, premium car segment remains less than 2 per cent of the total passenger vehicle market (3 million last fiscal) as compared to 5-10 per cent in various countries," Pawah said.
The efforts should be to at least make it 5 per cent and and eventually 10 per cent of the PV market, he added.
The premium vehicle segment is estimated to be around 35,000 units per annum currently.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Related News
Popular BMW Models
Latest Cars
Upcoming Cars
Latest News
car&bike Team | Mar 20, 20262026 Triumph Daytona 660 Gets Feature and Hardware Updates OverseasTriumph Motorcycles has updated the Triumph Daytona 660 for 2026 in international markets, with the changes focusing mainly on equipment, handling and styling.1 min read
car&bike Team | Mar 20, 2026Premium Petrol Gets Costlier By Rs. 2 Per Litre, Regular Petrol Price UnchangedAfter a long time prices of Petrol have been increased, though only for premium versions and not regular fuels.1 min read
Jaiveer Mehra | Mar 20, 20262026 Kia Carens Clavis Gets Variant Rejig; New HTX(O) A, GT-Line & X-Line Trims IntroducedOther updates include a feature reshuffle on select mid-spec trims.1 min read
Jaiveer Mehra | Mar 20, 2026All-New Lexus ES Launched In India at Rs 89.99 Lakh; Gets All-Electric Powertrain For First TimeLexus has confirmed two powertrains for the Indian market, the familiar ES 350h and the all-electric ES 500e.2 mins read
Jaiveer Mehra | Mar 20, 2026Mercedes-Benz, Audi, BMW Cars To Cost More In India From April 2026The three German luxury carmakers have announced a price hike of up to 2 per cent, citing rising input costs and currency fluctuations.3 mins read
car&bike Team | Mar 19, 2026Honda Plans Third Production Line At Tapukara, Capacity To Cross 20 Lakh UnitsHonda Two-wheeler India aims to grow from the current 62.5 lakh units to around 80 lakh units by 2028.1 min read
Carandbike Team | Mar 20, 2026Skoda Kushaq Facelift Review: Sharper, Smarter, Still The Driver’s SUV?Skoda Kushaq facelift review with updated design, new features, and a new 8-speed automatic gearbox. But does it still stand out as the driver’s SUV in its segment?5 mins read
Seshan Vijayraghvan | Mar 10, 20262026 Mercedes-Benz CLA Electric Review: It’s Properly Good!The CLA moniker has returned but in an electric avatar. As impressive as it is, can this baby EQS become a success story?9 mins read
Bilal Firfiray | Mar 9, 2026Citroen C3X Review: 3 Reasons To Buy & 3 Reasons To AvoidThe C3X, with its refined turbo-petrol engine and improved features, deserves your attention. Here’s what works, what doesn’t, and whether it’s worth your money.1 min read
Bilal Firfiray | Feb 28, 2026Tata Punch EV Facelift Review: More Range, More Sense, Less MoneyThe Tata Punch EV facelift gets a bigger 40 kWh battery, faster 60 kW DC charging, improved thermal management, and better real-world range, and all of that at a lower introductory price. But does it become a more complete package now?6 mins read
Preetam Bora | Feb 24, 2026Hero Destini 110 Review: Simplicity, RefinedThe Hero Destini 110 is a no-nonsense commuter that is simple, comfortable and above all, fuel efficient. In 2026, when buyers are spoilt for choice, is it good enough to consider?6 mins read