German luxury carmaker BMW on Tuesday said it has raised the production capacity at its Indian facility to 5,400 units per annum and will make a fresh investment of Rs 70 crore by 2012.
The company's wholly-owned subsidiary BMW India has a manufacturing facility in Chennai, which had an installed annual production capacity of 3,000 units before the addition.
The company has so far invested Rs 110 crore on the plant.
"India is a market that holds great potential for our future and is a building block in our global market offensive," Board member Frank-Peter Arndt told reporters here.
The company said fresh investment of Rs 70 crore is an input for adding additional capacity over and above 5,400 units per annum, but did not specify how much it will go up to by 2012.
BMW India is also planning to increase its manpower strength to 400, from the present 200, by the end of this year.
"We will also be gearing the plant to produce a further model, XI, for the Indian market, starting November 2010 and thereby opening up a new customer segment," Arndt said.
The company on Tuesday launched its new sports-utility vehicle, X5, in both petrol and diesel variants in India, priced between Rs 52.99 lakh and Rs 69.50 lakh.