(September 7, 2010) BMW, the world's largest maker of luxury vehicles, will expand the BMW and Mini model ranges to boost annual sales 55 percent over the next decade and fend off Volkswagen and Daimler, Bloomberg News reports.

A new factory and expansion of existing facilities may be needed to underpin growth in the long run, CEO Norbert Reithofer said.

BMW aims to sell more than 2 million vehicles by 2020 from 1.29 million last year.

BMW plans to widen the 6 series and Mini model lines as well as build a battery-powered car for city driving, the CEO said. The maker of BMW, Mini, and Rolls-Royce vehicles is fighting to protect its turf from Volkswagen, the owner of Lamborghini, Bentley and Audi, as it merges with Porsche Automobil Holding SE.

Audi has vowed to topple BMW as the luxury leader by 2015. BMW claimed the top spot from Daimler's Mercedes-Benz in 2005.

“If you're not on the attack, there's the risk of ending up on the defensive,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “BMW has the right mix of caution and controlled offense to meet its targets.”