BMW increases level of localisation at Chennai plant to 50%

German luxury carmaker BMW has started sourcing different components for local production of its cars at the Chennai plant from various Indian manufacturers. The company's suppliers include Force Motors, ZF Hero Chassis, Draexlmaier India, Tenneco Automotive India, Valeo India, Mahle Behr and Lear India. With the addition of the new partners, BMW has increased it level of localisation at its Chennai plant to approximately 50%.

Here’s a quick look at the components sourced from the various suppliers:

• Engines and gearboxes - Force Motors
• Axles - ZF Hero Chassis
• Door panels and wiring harness - Draexlmaier India
• Exhaust systems - Tenneco Automotive India
• Heating, ventilating, air-conditioning and cooling modules - Valeo India and Mahle Behr
• Seats - Lear India

BMW's Chennai facility started operations on 29 March 2007. Till date, the BMW Group has invested Rs. 3.9 billion in the plant. The facility has two assembly lines and locally assembles models such as the 1-Series, 3-Series, 3-Series Gran Turismo, 5-Series, 7-Series, X1, X3 and X5.

Higher levels of localisation are expected to help BMW keep prices of its products competitive.