BMW India plans to hike capacity at its Chennai facility for the second time in recent times as it sees more demand for luxury vehicles in the country. Currently the German firm has a capacity to manufacture 3000 units per annum, which it intends to increase to 8000 units by early next year. This expansion is part of a Rs. 180 crore investment by 2012. The expansion in capacity is fueled by the upcoming X1 compact SUV, which will be the cheapest BMW in India and a volume player for the German firm.