The company had unveiled the new 5-Series sedans with petrol and diesel options in April.
"The BMW 5 Series is the core product in our model range and has significantly contributed to the image and success of BMW in India. We are confident that the new BMW 5 Series produced in Chennai will further increase our momentum in the Indian luxury car segment," BMW Plant Managing Director Juergen Eder said in a statement.
The company will start the deliveries of the cars by end of this month, the statement added.
While the 523i, 530d and 525d will be produced as completely-knocked-down units at the Chennai facility, the 535i will be imported as a completely-built-unit.
The company has sold over 3,700 units of the 5-Series sedans in India since 2007. The luxury model accounts for over 50 per cent BMW's total sales globally.