As a part of the new Government’s ‘Make-in-India’ program, BMW India has revved up local content of their cars to the extent of 50%.
Luxury Car makers BMW announced higher localization which will allow the company to face challenges such as inflation in emerging markets. As a part of the company’s contribution to ‘Make-in-India’ program, BMW India has localised manufacturing of engines and gearboxes. BMW India’s Chennai facility has the capacity to produce 14,000 cars per annum.
To draw attention to localisation, Sachin Tendulkar has put together a BMW 5 Series using parts from Indian auto component suppliers. An avid BMW enthusiast, Tendulkar regaled the standards followed by the BMW India Chennai facility and quality and performance of its products. He can proudly claim that he has been instrumental in putting together one such model.
95 percent of the company models sold in India are being produced from Chennai. BMW India produces 8 of its models from Chennai plant which also includes the X3 and X5 along with 7 Series, 5 Series and 3 Series sedans. Capacity utilization stands at 60-70 percent currently, and likely to be enhanced further in the coming months according to demand. Other components sourced locally are engine and transmission from Force Motors, Axles from ZF Hero Chassis, Door Panels and Wiring Harnesses from Draexl Maier India, Exhaust System from Tenneco Automotive India, Heating, Ventillation Air Conditioning and Cooling Modules from Valeo India and Mahle Behr while Seats are supplied by Lear India.
BMW India estimates immense growth in India over the next 10 years. New product launches are on the cards with expansion into Tier II locations. Dealer network expansion is planned from a current count of 40 dealers to 50 over the next year while cumulative investments in India have been increased from INR 390 crores to INR 490 crores with a major chunk being routed to its Chennai plant.