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BMW to Source Engines from India

Posted on March 24th 2008

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bmw-logo.jpgGerman Luxury Carmaker BMW is assessing over 100 component manufacturers in India before it stats to outsource engines and chassis for its global manufacturing operations.

We are impressed with the quality of die casts and forgings in India that we use for our global operations. The quality of products from second- and third-tier is impressive. Once our pilot project evaluating 100 ancillaries is completed we will outsource engines and chassis for our cars.

- Ind Herbert Diess said.

They are currently selling the 3 and 5 series in Chennai which is assembled from kits at its plant. The company currently assesses motorbike handles and die casts from India through their offices in Gurgaon, Haryana.

They recruited 200 new employees in 2007.

The number of jobs we add in India depends on our market growth. India is an important market for us. Our estimate is that by 2015 the market for premium cars will reach 10,000 units a year.

- Chairman of the BMW Board of Management, Norber Reithofer said.

India is an important growth market for us. Our estimate is that by 2015 the market for premium cars will reach 10,000 units a year. We also plan to increase the share of our CKD units in the country.

- Reithofer said.

1BMW sports utility vehicles like the X3, X5 and the 7 series could be locally assembled at the Chennai plant if we reach a critical number of 500 units.

- Frank Peter Arndt (Head of Production) said.

By editor in Auto India News, BMW

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