BMW Group India
The year 2016 has not been an easy one for the automotive industry and that applies equally to BMW Group India. In the face of challenges, the group concentrated on firmly establishing a sustainable approach that measures both volume and profitability. It built a strong product portfolio, increased brand connect with customers, reshaped dealer strategy, increased localisation and many other initiatives have already started reflecting the results.
The group has increased sales and market share. They delivered 7,861 cars to customers in 2016, while sales for 2016 grew by 14% as compared to 2015. They have constantly increased the number of locally produced car models, and presently, the plant locally produces eight car models and has an annual capacity of 14,000 units.
The level of localisation at BMW’s Chennai plant has been increased to up to 50%, which benefits BMW in terms of cost optimisation and value addition. BMW has partnered with local suppliers for sourcing of components, including: Engine and gearbox 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 modules from
Valeo India, Mahle Behr and Denso Kirloskar; and seats from Lear India.
The group continues to build operations in India in a systematic way. Till date, BMW Group has invested Rs 11.3 billion in its subsidiaries in India (BMW India – Rs 4.9 billion and BMW Financial Services India – Rs 6.4 billion).
