Thursday, July 21, 2005

BMW plans $40 million plant in India

German luxury car maker BMW has sought permission from the Indian government to set up a $40 million manufacturing plant. The proposed plant will be located in the town of Chengelpet in the southern state of Tamil Nadu, which already is the home to global car majors Ford Motor Co. and Korea's Hyundai Motor Co. A proposal from BMW AG and BMW Holdings BV is awaiting clearance from the Foreign Investment Promotion Board. The proposed plant is expected to assemble automobiles from knocked down kits, and import built-up units as well. BMW, the world's largest premium car maker, would buy out its subsidiary, BMW India Pvt. Ltd., which it set up in 1997. BMW AG will buy 30 percent of the stake and BMW Holding will buy the remainder. The German brand will also issue fresh shares to itself. BMW makes the popular 3-series saloon, the Mini and the 1-series compact, besides the Rolls-Royce brand.