New Delhi (PTI): Driven by robust demand for luxury cars in India, German luxury car maker BMW is increasing manufacturing capacity of its Chennai plant to more than 3,000 units per annum, as it expects sales in the current calendar year to touch 2,000 units.

"We have beaten our target of selling 1,000 units in 2007 by successfully delivering 1,387 vehicles and this has also led to increase in our capacity to 3,000 units per annum from 1700 units on a single shift basis," BMW India President Peter Kronschnabl said, while speaking at the launch of BMW M cars and BMW Individuals in the 9thAuto Expo.

With the launch of new product range, BMW India is targeting a sale of more than 2,000 units in the country in 2008 and is going to invest Rs 3 crores in streamlining its production capabilities.

Last year, the company sold 1,387 units in the country, which included 320 units of five series, 251 units of seven series, 743 units of three series and six units of SUV X3.

The company is also working on increasing its dealership network. It would establish three new dealership in Cochin, Ahmedabad and Kolkata to take the total number of dealership to 12 covering all metropolitan cities.