A little revolution took place in 1923 when BMW produced its first motorcycle, the R32. It got a lot of attention since BMW was only known for the production of engines and not complete vehicles.
In 1928 BMW becomes an automobile manufacturer after purchasing the Fahrzeugfabrik Eisenach. Before that, it produced planes, engines and motorcycles. The first BMW small car was only built in 1929 under licence from the Austin Motor Company, but was overruled by the company's own designs in 1932. (BMW History, 2014)
After a change in the German government in 1933, the German aircraft industry received substantial financial support. The following year the BMW AG split off its aero-engine section into the BMW Flugmotorenbau