BMW Chief Executive Norbert Reithofer with the BMW 320I car in Chennai on thursday. (Reuters)

Chennai, March 29: German car manufacturer BMW today inaugurated its first plant in the country. The company hopes to sell 1,200 cars in India this fiscal and will open 12 dealerships by 2009 — the year it hopes to launch its popular mini car.

The Chennai plant will initially manufacture the company’s 3 Series range, while production for the 5 Series will begin in May. The price of the 3 Series will range between Rs 26.7 lakh and Rs 32 lakh and the 5 Series will be priced between Rs 37 lakh and Rs 42 lakh.

The 3 Series comprises the entry-level 320i (petrol), the 320 D (diesel) and the 325i (petrol) variants. “The strategy of local production will allow us to exploit the opportunities available for opening up and exploiting markets with long-term potential for growth,” said Frank Peter Arndt, production director of BMW AG.

The Chennai facility has an overall production capacity of 1,700 units. Arndt said 90 per cent of BMW’s total sales in India would come from the Chennai facility, while the balance 10 per cent would be imported from Germany. Of this 90 per cent, the 3 Series would contribute nearly 50 per cent, said a senior company official.

The import models include the BMW X3 Series, X5, 6 Series and 7 Series. Last year, the company sold a total of 257 units. The Chennai plant is the fifth plant in Asia after China, Thailand, Malaysia and Indonesia.

The company has invested over 20 million euros in India. The money has been invested in setting up the Chennai facility and its warehouse in Mumbai for spare part distribution from a rented facility.

Norbert Reithofer, chairman of the executive board of BMW AG, said: “The importance of Asia in our strategic consideration has been increasing over the last few years. This is where we expect the most dynamic economic growth in the long-term. India offers big opportunities for growth. Opening this plant represents our long-term route to profitable growth.”

The BMW group has been selling cars in India over the last 10 years through its dealers.

Lamborghini launch

Italian sports car maker Lamborghini today said it will soon launch its latest model, the Gellardo Superleggera, in the Indian market with a price tag of at least Rs 2.2 crore.

The new car would be delivered on order through its select dealer base in the country.

'We are excited to bring this international driving experience to the discerning indian motor-sporting fans... These great machines will be retailed from our exclusive outlet,' automobili lamborghini spa president and ceo stephan winkelmann said in a statement.

The gellardo superleggera is being sold for 1,26,800 euros (about rs 76,08,000) in the european markets, but would be costlier in india as the country imposes massive customs duty on foreign cars.

The company had launched its sports convertible gallardo spyder and the murclelago in india last year. Pti

Last year, BMW AG sold about 1,36,000 units across its three brands—BMW, Mini and Rolls Royce — in Asia. The company hopes to sell 1,50,000 units by 2008.

The company’s long-term goal is to establish the Asian region as the fourth mainstay of global business complimenting Germany, western Europe and North America.