BMW India declares 50% Localization of Parts, Prices to curtail?
If you are eyeing any BMW model to be your next owned asset, we suggest you to wait a bit because there is a possibility of the company announcing a price cut on its various models. After partnering with Indian manufacturers, BMW India seems to chant the localization of parts mantra by sourcing it to almost 50 percent.
The luxury carmaker with this move is planning a sure shot winning recipe in a bid to beat the other two German rivals, Audi and Mercedes.
BMW has tied up with different Indian manufacturers to source parts, details of which are mentioned below:
• Engine, gearbox unit: Sourced from Force Motors
• Axles: Sourced from ZF Hero
• Chassis, door panels and wiring harness: Sourced from Draexlmaier India
• Exhaust System: Sourced from Tenneco Automotive India
• Heating-ventilating, AC, cooling modules: Sourced from Valeo India and Mahle Behr.
• Seats: Sourced from Lear India
To embrace the occasion for 50 percent localization, Ex-cricketer Sachin Tendulkar, an avid BMW enthusiast was joined by many technicians to assemble the BMW 520d. Sachin also mentioned his memorable experience of making a BMW with his own hands and said it was something he would cherish. He went ahead saying that he was overwhelmed by getting the opportunity to go through the minute details of the car during its making and next time when he takes out his BMW, he would proudly say ‘I have made one too!’
The numerous cars which are localized from the company’s Chennai plant are namely the 1 Series, the 3 Series, the 3 Series Gran Turismo, the 5 and 7 Series, the X1, X3 and the X5. While no details were shared by the company if the localization will benefit the customers in terms of the car pricing, the partnering with different Indian auto component suppliers will help them evaluate the actual price in the making of the car. This will benefit BMW India to optimize costs as well as add value. Not just this, but the company can also look forward to create more business and profits for their suppliers and in a way profit for the whole company.
Having invested around INR 4.9 billion in BMW India, the BMW Group has been looking at the Indian market with the long term perspective and this move again proves that it is expecting a good return from the Indian market.