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BMW’s bullish, investment to go to Rs. 490 crore; Increased localisation

Snapshot: BMW to increase localisation of the components, the prices to reduce even further

The German car maker BMW, had announced earlier this year that to achieve greater localization (approx 50%), it has started sourcing different components from different Indian manufacturers for the cars that it locally produces at Chennai. The company has increased its investment in India to Rs. 490 crores from Rs. 390 crores.

BMW has a manufacturing unit in Chennai and a warehouse in Mumbai. The company claims that 95% of its cars that sell in India are built at its plant in Chennai. The manufacturing unit can produce 14,000 units in a year. There are two assembly lines which together assemble the different models - 1-Series, 3-Series, 5-Series, 7-Series, X1, X3, 3-Series Gran Turismo and X5.

BMW’s has grabbed a major share of the market since it entered India and was able to sell 6,400 cars in India in the year 2014. With increased localization, BMW would be able decrease the prices of their cars and make them more competitive. It’s in company’s roadmap to introduce 15 new car models in the year 2015 and increase the dealership network by penetrating the tier-2 cities of the country.

The training facility of the company at Gurgaon has the capacity to train 18,000 people. BMW’s always been keen on investing in the training area too. A good amount of investment of the company goes in conducting training programs for its employees.

A chinese woman paid 1 Yuan in bills to buy a BMW 7-series, you may want to read the story!

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