German carmaker BMW has been a popular choice in the Indian luxury car segment. With recent flooding of luxury cars from many international car-makers, it has indeed been important for the BMW brand to lure customers with features at a unbeaten price tag. This year the company has reportedly been planning on attaining double-digit sales growth as the brand had witnessed a drop last year.
The BMW India has reportedly partnered with seven local suppliers for sourcing components for production of cars at its Chennai plant. The list of company includes - Force Motors, ZF Hero Chassis, Draexlmaier India, Tenneco Automotive India, Valeo India, Mahle Behr and Lear India. The move shall not just help the brand delivering efficient production numbers, but indeed it shall also support company's commitment to the government's 'Make in India' initiative. Speaking more on the occasion, BMW India President Philipp von Sahr said, “This is part of the long-term strategy to build flexible supply chain from the Indian market that would help in efficient cost structure and bring efficiency in our production system. BMW has incorporated such strategy in other market like China that has helped to increase sales.”
The company has reportedly invested about Rs 390 crore at its manufacturing plant and parts warehouse in Mumbai. As for its Chennai plant, the company uses it for the production of eight popular models like - 1 Series, 3 Series, 3 Series Gran Turismo, 5 Series, 7 Series, X1, X3 and X5 SUV. Unlike the 20% of local content usage, the percentage ratio is likely to increase soon.
Source: ET
