This paper gives an overview of the CARMENES instrument and of the survey that will be carried out with it during the first years of operation. CARMENES (Calar Alto high-Resolution search for M dwarfs with Exoearths with Near-infrared and optical Echelle Spectrographs) is a next-generation radial-velocity instrument under construction for the 3.5m telescope at the Calar Alto Observatory by a consortium of eleven Spanish and German institutions. The scientific goal of the project is conducting a 600-night exoplanet survey targeting ~ 300 M dwarfs with the completed instrument. The CARMENES instrument consists of two separate echelle spectrographs covering the wavelength range from 0.55 to 1.7 μm at a spectral resolution of R = 82,000, fed by fibers from the Cassegrain focus of the telescope. The spectrographs are housed in vacuum tanks providing the temperature-stabilized environments necessary to enable a 1 m/s radial velocity precision employing a simultaneous calibration with an emission-line lamp or with a Fabry-Perot etalon. For mid-M to late-M spectral types, the wavelength range around 1.0 μm (Y band) is the most important wavelength region for radial velocity work. Therefore, the efficiency of CARMENES has been optimized in this range. The CARMENES instrument consists of two spectrographs, one equipped with a 4k x 4k pixel CCD for the range 0.55 - 1.05 μm, and one with two 2k x 2k pixel HgCdTe detectors for the range from 0.95 - 1.7μm. Each spectrograph will be coupled to the 3.5m telescope with two optical fibers, one for the target, and one for calibration light. The front end contains a dichroic beam splitter and an atmospheric dispersion corrector, to feed the light into the fibers leading to the spectrographs. Guiding is performed with a separate camera; on-axis as well as off-axis guiding modes are implemented. Fibers with octagonal cross-section are employed to ensure good stability of the output in the presence of residual guiding errors. The fibers are continually actuated to reduce modal noise. The spectrographs are mounted on benches inside vacuum tanks located in the coudé laboratory of the 3.5m dome. Each vacuum tank is equipped with a temperature stabilization system capable of keeping the temperature constant to within +/-0.01°C over 24 hours. The visible-light spectrograph will be operated near room temperature, while the near-IR spectrograph will be cooled to ~ 140 K. The CARMENES instrument passed its final design review in February 2013. The MAIV phase is currently ongoing. First tests at the telescope are scheduled for early 2015. Completion of the full instrument is planned for the fall of 2015. At least 600 useable nights have been allocated at the Calar Alto 3.5m Telescope for the CARMENES survey in the time frame until 2018. A data base of M stars (dubbed CARMENCITA) has been compiled from which the CARMENES sample can be selected. CARMENCITA contains information on all relevant properties of the potential targets. Dedicated imaging, photometric, and spectroscopic observations are underway to provide crucial data on these stars that are not available in the literature.