German luxury carmaker BMW has increased the level of localisation in its cars assembled at the Chennai plant by upto 50%. The increasing the local content the company intent to stay stronger in India by passing the cost advantage to its customers. To highlight the localisation strategy, BMW India invited Sachin Tendulkar, who marked the occasion in a unique way by assembling a BMW 5 Series using parts from Indian auto component suppliers.
After working in the assembly line along with few other staff, Sachin Tendulkar said, “I am an avid BMW enthusiast and have been driving BMW cars since a very long time. But the experience of making a BMW with my own hands was unique and unforgettable. I am impressed by the high quality standards followed at BMW Plant Chennai that ensure the impeccable performance of a BMW. I got the opportunity to go through the tiniest details and efforts that are put into making a BMW. Next time I take my BMW out, I can proudly say – I have made one.”
Philipp von Sahr, President, BMW Group India said, “The BMW Group has always looked towards India with a long-term perspective and our strategy is based on an inclusive approach. We have continued to build our operations in India in a systematic way. With a strong portfolio of locally produced cars, the time was appropriate to partner with major Indian auto component suppliers. This decision benefits BMW in terms of cost optimisation and value addition while at the same time it creates business and profitability for our suppliers – a win-win situation.”
To achieve this level of localisation, BMW BMW has tied up with 7 leading component manufacturers in India. The company sources engine and transmission 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.
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 BMW 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. The cars locally produced at BMW Plant Chennai now feature very strong local content. We are confident that through our partnership with Indian auto component suppliers, we will set even higher benchmarks in quality standards and supply chain management.”
BMW Plant Chennai started operations on 29 March 2007. Since then, the BMW Group has strengthened its commitment to the Indian market and has continuously increased the number of its locally produced car models. Upto eight car models can be locally produced on two assembly lines at BMW Plant Chennai. Presently, the BMW 1 Series, the BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 7 Series, the BMW X1, the BMW X3 and the BMW X5 are locally produced at BMW Plant Chennai.
