BMW to again expand Indian capacity

BMW AG’s India unit said it would raise capacity at its south India factory–the second expansion in three months–to meet a surge in demand for its luxury sedans and sport utility vehicles in Asia’s third-largest automobile market. The automaker is also expanding capacity so it can assemble its compact X1 SUV, which the company expects to become its best-selling model in India within a few months, BMW India President Andreas Schaaf said. The latest expansion will take annual capacity at the plant, located in Chennai in the southern state of Tamil Nadu, to 8,000 cars and SUVs from 5,400 units previously. (December 23, 2010)