BMW inks seven deals to increase localisation

BMW has entered into various partnerships with seven leading Indian auto component suppliers for sourcing parts to enable increased localisation of its cars manufactured at its plant in Chennai. Increased localisation will pit BMW more competitively in the Indian market against its rivals, and help reduce cost.

The German carmaker has inked these partnerships with Force motors, ZF Hero Chassis, Draexlmaier India, Tenneco Automotive India, Valeo India, Mahle Behr and Lear India. With this, BMW will be able to increase localisation by as much as 50 percent. BMW mostly sources the engine and gearbox from Force Motors, axles from ZF Hero Chassis; door panels and wiring harness from Draexlmaier India; exhaust systems from Tenneco Automotive India; heating, ventilating, air-conditioning and cooling (HVAC) modules from Valeo India and Mahle Behr, and seats from Lear India.

Increased localisation will also help BMW to cut down on taxes, which is 120 percent on imported cars and 60 percent on partly assembled cars, as well as improve the workshop and aftersales operations as the waiting period for some imported components is high.

According to Philipp von Sahr, president, BMW Group India, “Since 2007, BMW Group has strengthened its commitment to the Indian market and has continuously increased the number of its locally produced car models. With a strong portfolio of locally produced cars, it is now the appropriate time for us to partner with major Indian auto component suppliers who will play a significant role in the future strategy of BMW Group in India.”

Robert Frittrang, managing director, BMW Plant Chennai, said, “BMW Plant Chennai takes pride in producing cars that have the same international quality standards as any of the 30 BMW Group production and assembly facilities worldwide. Highly skilled employees, advanced manufacturing processes along with state-of-the-art machinery and technology provide all the necessary ingredients to achieve these tough standards. We are confident that through our partnership with Indian auto component suppliers, we will set even higher benchmarks not only in quality standards but also in cost optimisation and value addition.”

BMW India’s plant in Chennai started operations in March 2007, and currently produces the 1 series, 3 series, 3 series Gran Turismo, 5 series, 7 series, X1, X3 and X5. BMW India, which is currently facing aggressive competition in the luxury car market in India, sold a total of 6,812 units in 2014, compared to Mercedes-Benz India's 10,201 units and Audi India's 10,851 units.

Comments

2018 Lamborghini Urus India review, test drive

On first introduction, it’s a recipe for intimidation. It’s claimed to be the fastest SUV in the world (0-100kph in 3.6sec and a top speed of 305kph puts it nearly in supercar territory), and it’s made by Lamborghini – creator of some of the most savage vehicles on the market. Things – as with any Lamborghini, for that matter – would be a lot less daunting if we were driving on a smooth European country road, a wide motorway, or even a race track. But today we’re driving the Urus on a narrow ghat road, as well as through some heavy Pune traffic. Perhaps the intention was to demonstrate that this is the first Lamborghini ever to go on sale in India that truly works in our conditions – but still, I doubt they accounted for rush hour. It’s requisitely mad to look at, employing as many ‘sporty’ design tropes to an SUV body style as possible – the only thing missing is a massive wing on the back; and somehow, it works. It’s ...

Skoda Vision RS concept previews new hatchback

Skoda has set the stage for its forthcoming Volkswagen Golf and Ford Focus rival with the Vision RS, a concept car that features a performance plug-in hybrid (PHEV) powertrain. Under the sporty details and concept flourishes, the Vision RS bears a close resemblance to the Rapid hatchback that will be introduced next year. The fact that it has been previewed in vRS form, complete with 245hp PHEV powertrain, shows how much further upmarket the new Rapid will go compared with the current value-led model. Skoda product marketing chief Björn Kroll said: “The current Rapid is too low-market. For this one, we have tried to balance it out.” Skoda will drop the slow-selling liftback version and concentrate on the Spaceback hatch for the new Rapid. At 4,356mm, the concept is just over 50mm longer than the current Rapid, and it has a 440-litre boot that's up by 25 litres. The concept retains some of the current Rapid’s des...

What to avoid during a car service

When it comes to getting their cars serviced at authorised outlets, owners usually go the whole hog. They want their cars coming out of service centres looking brand new, and are willing to pay for it. But do service centres take undue advantage of this? Yes, they do. Servicing may involve changing certain parts and oils after a set interval, but service centres will almost always try to plug in a few extras using technical jargon that a layman may not really understand. Certain processes are completely unnecessary, and customers end up paying extra as they are not aware of what's important and what's not. Also, most of the times, the service associate will throw you a hard sales pitch, and it's not always done with your best interests in mind. So what exactly are the things you don’t really need and should avoid? Engine flushing Flushing an engine simply means cleaning the impure oil and gunk that ...

Automobilestillnow

Search This Blog