BMW India has hiked production capacity to fulfill surging demand for its cars in the country. The plant in Chennai has recently increased its production capacity to 5400 units per year on a single shift basis. The company will be making a fresh investment of Rs 70 crore by 2012. BMW Group is tapping into new growth potential and will further increase its commitments in India. Earlier, the company’s plant had an annual capacity of 3000 units per annum. The plant will be structurally expanded to increase the production capacity further. Around 18 acres of additional land will be procured from Mahindra World City for this expansion. Currently the plant is spread over 21 acres of land. A new vehicle despatch centre will also be constructed inside the facility by 2012.