BMW India are planning to begin assembly of the soon-to-be-launched 1 Series hatchback and the 7 Series sedan at their Chennai plant in 2013.
Hoping to retain their leadership position vis-a-vis the likes of Mercedes-Benz and Audi in the country’s burgeoning luxury car market. In India cars that are locally assembled (CKD) attract lower taxes, compared to completely built-up units (CBU), which are imported. This step will help BMW increase their local production and, in turn, price their vehicles competitively against their rivals.
The 1 Series hatchback will be the most affordable BMW in the country, while the luxury saloon 7 Series is the flagship model for the German marque. The new version of the 7 Series will be sold from the end of next year, while the compact 1 Series will be launched earlier around mid-2013.
BMW already assemble the 3 Series and 5 Series sedans, the X1 SUV and the diesel engine version of their bigger SUV, the X3, at the Chennai facility, which has a capacity to assemble up to 11,000 vehicles annually. Other vehicles like the X5, X6 and 6 Series offered by the company are imported as CBU.
