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BMW to invest more in India to step up localisation

October 16, 2015, 01:37 PM IST by Ninad Ambre
BMW to invest more in India to step up localisation

BMW plans to increase their investments in India. The intention being to improve the localisation of their products looking at the flexibility and profitability of the venture.

The manufacturer already has invested Rs 490 crore in our country apart from the Rs 640 crore in financial services. Their localisation content is now at 50 per cent with localised engines, gearboxes, dash boards etc. According to their make in India strategy, they will increase this level and eventually step up from assembly to a fully-fledged production.

BMW says that they are focusing on premium products in India at present and are not really looking at their volume spinning models. Presently, their Chennai plant has a capacity of producing 13,000 units. To have a full-fledged plant they will have to have a volume of 30,000 to 40,000 units and are prepared for the same.

Philip Von Sahr, present at the BMW X6 M and X5 M launch event yesterday at Chennai, said that this growth will take some time, but BMW is ready to invest in the Indian market. They find conditions more favourable in India than in China, Brazil and Russia. They are going aggressive with their long term investments in the Indian market and may be sometime in future also start exporting from India.

Tags:bmw x5,x5,BMW
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