| BMW has said that it is positive about sourcing components from India for its global operations as the German carmaker finally presses the button to establish a car assembly operation there.
Representatives of the Automobile Component Manufacturers Association (ACMA) have met Klaus Berning, BMW's vice president in charge of sales in Asia Pacific and Africa. It is reported that the BMW group is confident “something will come out of that”.
BMW signed a deal with the Tamil Nadu state government for the construction of its CKD kit car plant at Maraimalai Nagar, about 45km south of Chennai.
CKD production is set to bring down the price of BMW cars in India as they are liable to a 15 per cent tariff rather than the current 60 per cent. BMW will employ 200 people directly in India and expects its expanded presence will lead to around 600 jobs in the retail and service network.
BMW will invest close to €20 million ($23.4 million) in the first phase to achieve annual capacity of 1,700 3 Series, and later 5 Series, on a single shift. The kits will be sent out from Germany after minor modifications for Indian conditions, specifically road surfaces and petrol quality. Initial local content will be 10 per cent as seats and door panels will be sourced nearby.
|
|
|
