German BMW raises India sourcing to 50%

German luxury car maker BMW on Thursday said the localisation level in the cars it makes in India has reached up to 50 per cent and it plans to introduce 15 new models this year. Cricket legend Sachin Tendulkar marked the occasion at the company’s manufacturing unit at Mahindra World City, Singaperumalkovil near here, by formally assembling a BMW 5 Series car using parts from Indian auto-component suppliers.

The company said 50 per cent of the 2,800 parts used in this series are now produced locally. BMW began operations at the Chennai plant on March 29, 2007. Since then, the group has strengthened its commitment to the Indian market and has continuously increased the number of locally produced car models. Eight car models are produced on two assembly lines at the BMW Plant Chennai plant -- 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series, X1, X3, and X5.

“In 2015 we will expand our product range and cover all the opportunity available in the luxury car segment. This year we will launch 15 new products along with i8 launched in January. We will also launch 1 Series, 3 Series, (new models),” BMW Group India President, Philipp von Sahr told reporters. He said: “Till date, BMW Group has increased investments to Rs 4.9 billion (Rs 490 crore) in BMW India from Rs 3.9 billion.” BMW activities in India include the manufacturing plant in Chennai, a parts warehouse in Chennai, a training Centre in Gurgaon. The company has 40 sales outlet in India. 

Some of the major auto components sourced for local production of cars at BMW Plant are engine and transmission from Force Motors, axles from ZF Hero Chassis; door panels and wiring harness from Draexlmaier India; exhaust systems from Tenneco Automotive India, heating and ventilating, air-conditioning and cooling modules from Valeo India.