BMW India is looking to join hands with more domestic suppliers for localized sourcing of components. This strategy should help keep the price of its fleet more competitive in the country, as the company targets double-digit sales growth in 2015 after posting a drop last year. The Bavarian manufacturer aims to have at least half the components sourced from the Indian market.
Currently, BMW India sources components from 2 local suppliers, but now, local component sourcing partners will include:
- Engine and Gearbox – Force Motors
- Axles – ZF Hero Chassis
- Door Panels and Wiring Harness – Draexlmaier India
- Exhaust Systems – Tenneco Automotive India
- Heating, Ventilating, Air-conditioning and Cooling (HVAC) Modules – Valeo India and Mahle Behr
- Seating – Lear India
BMW India currently assembles eight models – 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series, X1, X3 and X5 SUV – at its Chennai plant with just 20% local content. The new strategy BMW expects this localisation strategy and the new products – it has lined up as many as 15 launches for 2015 – to buckle up sales in the country.
Courtesy: BusinessWire India
Force already supplies powertrain to Mercedes from inception except for the AMG versions so it’s not a surprise.What surprises me is they have opted for Lear India in place of Johnson’s control which is an old supplier to the Bavarian auto giant.