To keep the pricing of its cars competitive in the Indian car market, the German carmaker marque BMW, has increased its local sourcing of vehicle component parts by almost 50%. BMW poured in close to 4-billion Rupees on the Chennai plant, till date and it first started its ops in March of 2007. The plant locally assembles several models of the marque on two separate assembly lines. These models include the 1-Series, 3-Series, 3-Series Gran Turismo, 5-Series, 7-Series, X1, X3 and X5.
Locally manufactured parts for the Bavarian carmaker includes Indian suppliers like Force Motors, ZF Hero Chassis, Draexlmaier India, Tenneco Automotive India, Valeo India, Mahle Behr and Lear India. Thanks to the new additions of local parts suppliers, BMW has managed to increase its localisation process at its Chennai plant, thereby keeping the costs of the manufacturing process in check. The locally sourced components include:
- Engines and gearboxes from Force Motors.
- Axles from ZF Hero Chassis.
- Door panels and wiring harnesses from Draexlmaier India.
- Exhaust systems from Tenneco Automotive India.
- HVAC (heating, ventilation, air-conditioning and cooling) modules from Valeo India and Mahle Behr.
- Seats from Lear India.
We expect BMW to eventually increase the scale of localisation even more to keep the prices of its cars competitive in the India market.