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BMW to increase sourcing of components from India Print E-mail
Written by Viswanath   
Wednesday, 02 April 2008
German luxury car and bike manufacturer BMW will soon begin to source engines and chassis from India for their global manufacturing operations. BMW India's International Purchasing Office is currently evaluating over 100 component manufacturers in order to identify potential suppliers.

BMW India,a 100% subsidiary of the BMW Group, has its headquarters in Gurgaon, Haryana.

BMW's international purchasing office (IPO) which opened in the country last year is already sourcing handle bars and die casts among other parts for its high-end motorcycles.It has also been sourcing much of its software from India from multinationals like Mico Bosch and Conti.   

Mr. Ind Herbert Diess, who is on the BMW AG board, said that the company was impressed with the quality of die casts and forgings in India and once their pilot project of evaluating 100 ancillaries is completed they will outsource engines and chassis for their cars. Diess refrained from commenting on the value of components that were being currently sourced from India and declined to specify the possible quantity that BMW was looking to procure from the country. He said that it was too early to give a number or value since most of the operations are in the very early exploration stage.

Although the company has been maintaining a low profile in the Indian auto market, Dr. Norbert Reithofer, Chairman of the Board of Management, BMW AG, said that India is an important growth market for BMW and by 2015 the market for premium cars will reach 10,000 units a year. They also plan to increase the share of their CKD units in the country.

The company set up its production plant in Chennai (Tamil Nadu) in March 2007 where it assembles the BMW 3 Series and BMW 5 Series Sedans in petrol and diesel variants from CKD (completely knocked down) kits .The Chennai plant has a capacity to produce 3000 units per year on a single shift basis.

BMW India plans to create a dealer organisation across all metropolitan centres of the country. So far,nine dealers represent BMW in the Indian market; Bird Automotive (Gurgaon, NCR), Deutschen Motoren (New Delhi); Navnit Motors (Mumbai), Infinity Cars (South Mumbai); Krishna Automobiles (Chandigarh); Navnit Motors (Bangalore), Delta Motors (Hyderabad), Kun Exclusive (Chennai) and Bavaria Motors (Pune). By the end of 2008,the company plans to have 12 dealers covering all the metropolitan centers of the country.

In addition to the BMW 3 Series and BMW 5 Series Sedans assembled at the Chennai plant, the BMW dealerships will display the BMW 6 Series and the BMW 7 Series.The BMW X3 and X5 are available as completely built-up units.

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