CARMENES (Calar Alto high-Resolution search for M dwarfs with Exo-earths with Near-infrared and optical Echelle Spectrographs) is a next-generation instrument for the 3.5 m telescope at the Calar Alto Observatory, built by a consortium of eleven Spanish and German institutions. The CARMENES instrument consists of two separate echelle spectrographs covering the wavelength range from 0.55 mu m to 1.7 mu m at a spectral resolution of R = 82, 000, fed by fibers from the Cassegrain focus of the telescope. Both spectrographs are housed in temperature-stabilized vacuum tanks, to enable a long-term 1 m/s radial velocity precision employing a simultaneous calibration with Th-Ne and U-Ne emission line lamps. CARMENES has been optimized for a search for terrestrial planets in the habitable zones (HZs) of low-mass stars, which may well provide our first chance to study environments capable of supporting the development of life outside the Solar System. With its unique combination of optical and near-infrared echelle spectrographs, CARMENES will provide better sensitivity for the detection of low-mass planets than any comparable instrument, and a powerful tool for discriminating between genuine planet detections and false positives caused by stellar activity. The CARMENES survey will target 300 M dwarfs in the 2014 to 2018 time frame.