In an attempt to expand its small car market, BMW is building a modular platform to manufacture small cars.

The front wheel drive architecture is slated to hit the market in 2014. BMW is a rear wheel car veteran and the entry of front wheel cars will be avant-garde and radical.

Norbert Reithofer, Chief Executive Officer of BMW said, "The smaller segments of the premium market are set to grow by 4-6 per cent each year until 2020. But there are only a few models on the market, so we want to further push into that segment".

The new platform would enable BMW to maintain an economy of scale in the small car segment. This would help BMW achieve its profit objective. It would also be able to augment sales by collaborating with other carmakers and sharing the platform with them.

This plan draws attention to the fact that market forces determine the manufacturers' policies. Small cars are fast gaining popularity and BMW is playing to the tune of consumer demand.

BMW is expanding its small car collection by bringing out its A1 model this month.