In case you were wondering that how the German luxury car maker BMW will answer the outrageous performances of its counterparts Audi and Mercedes, well here’s the answer. BMW India will launch 15 new models in 2015 along with increase in localization level from 20% to 50% at its Chennai plant to keep costs in check. To increase localization BMW has increased the number of local parts suppliers from two to eight.
The localization may not benefit the customers directly but it will protect BMW’s products from price hikes occurred by inflation and currency fluctuation.
BMW’s Chennai plant has two assembly lines and produces eight models such as BMW 1 series, 3 series, 3 series Gran Turismo, 5 series, 7 series, X1, X3 and X5. BMW recently discontinued various variants from its product series for 2015.
BMW had a dismal 2014 as compared Audi and Mercedes as BMW managed to retail only 6812 units in India against Merc’s 10201 units and 10851 units of Audi. In 2015 BMW will launch BMW M6 Gran Coupe, M6 Coupe and all new BMW X5M and X6M.
Commenting on this occasion, Philipp von Sahr, President, BMW Group India, said, “BMW Plant Chennai is the heart of our India operations. 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.”
“We have been focusing on long-term sustainable profitable growth in India. As we have a strong portfolio of locally produced cars, it is only appropriate that we increase our localization levels by sourcing more components locally. After the course correction we did in 2012-14 period focusing on long-term sustainable profitable growth rather than chasing volumes, today we are ready and better prepared for the next step of growing our Business here”. He further added.
BMW uses various auto components for local production from various suppliers like engine and gearboxes from force motors, Axles from ZF hero chassis, Exhaust systems from Tenneco automotive India; door panels and wiring harness from Draexlmaier India, seats from Lear India and Heating, air conditioning, ventilating and cooling modules from Valeo India and Mahle Behr.