BMW to invest in India

NDTV: "German car major BMW group announced an initial investment of Rs 1.1 billion for its assembly plant to be set up near Chennai and the sales subsidiary coming up at Delhi as part of its expansion plans in Asia.

The sales subsidiary would be located in the Delhi area, and the assembly plant at Maraimalai Nagar would produce BMW 3 series and 5 series saloons with the first car expected to roll out of the plant in early 2007.

Besides, as part of its formal entry into India, the company would expand its dealership network to all metropolitan centres, a company release said.

"The production and sales subsidiary will be owned 100 per cent by the BMW group and will commence business operations at the beginning of 2007. Initial investments total 20 million Euros," it said.

The release also states that the opening up of the Indian market was 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. This marks a further important step in our Asia strategy," AG Helmut Panke, Chairman, Board of Management, BMW stated.

The release also said that in the medium term the company would employ around 200 people in the country and up to 600 additional jobs would be created in the dealer and service network. (PTI) "