[TusharK]

The BMW factory in Chennai has produced its 1,00,000th car. A BMW Individual 740Li M Sport Edition marked the production milestone.



The BMW Group plant in Chennai started operations on March 29, 2007 and is celebrating its 15th anniversary this year. The factory employs over 650 workers.

BMW currently builds 13 models locally. These include the 2 Series Gran Coupe, 3 Series, 3 Series Gran Limousine, M340i, 5 Series, 6 Series Gran Turismo, 7 Series, along with SUVs like the X1, X3, X4, X5, X7 and also the Mini Countryman.



According to Thomas Dose, Managing Director, BMW Group Plant Chennai, the company has increased localization to up to 50% by collaborating with local suppliers. The plant has adopted sustainable manufacturing processes and runs on 100% green electricity.

Link to Team-BHP News

[Sahil]

I wonder how coincidently, this landmark comes up and the car made is a 7 series just a day after the Maybach launch.

BMW's PR team is clearly not liking all the noise MBIL is creating of late.

[dragracer567]

Originally Posted by TusharK

According to Thomas Dose, Managing Director, BMW Group Plant Chennai, the company has increased localization to up to 50% by collaborating with local suppliers. The plant has adopted sustainable manufacturing processes and runs on 100% green electricity.

I know how they calculate this 50% (by value or something else?). Seems quite high for a CKD.

[veedub89]

But speaking of the numbers, 1 lac cars seems a little less.
Hasn't BMW been manufacturing in India for the last 15 years or so?

[ajmat]

Originally Posted by dragracer567

I know how they calculate this 50% (by value or something else?). Seems quite high for a CKD.

The engines are "Indian" and come in from Force Motors -an Indian company who imports the components from the manufacturer.

The value calculation is open to creative interpretation.

[SR-71]

Originally Posted by dragracer567

I know how they calculate this 50% (by value or something else?). Seems quite high for a CKD.

While test driving the A4, the Audi SA told me that BMWs are manufactured in India unlike the Audi's which are assembled from CKD kits. This was confirmed by the BMW SA who is in touch with me for the 3. So I am confused when you say its CKD.

Originally Posted by ajmat

The engines are "Indian" and come in from Force Motors -an Indian company who imports the components from the manufacturer.

The value calculation is open to creative interpretation.

Does BMW manufacture the engines here for export worldwide ? Typically engine manufacturing is restricted to a few factories cause they are the tricky ones to make. So I am confused when you say they are manufactured locally as the market size for luxury calls is too small here to build an engine manufacturing facility just for India.

[ajmat]

Originally Posted by SR-71

Does BMW manufacture the engines here for export worldwide ? Typically engine manufacturing is restricted to a few factories cause they are the tricky ones to make. So I am confused when you say they are manufactured locally as the market size for luxury calls is too small here to build an engine manufacturing facility just for India.

They are assembled as also in the case of Mercedes Benz

[Turbanator]

Originally Posted by SR-71

While test driving the A4, the Audi SA told me that BMWs are manufactured in India unlike the Audi's which are assembled from CKD kits.

BMW & MB imports parts as CKD without Engines. Here's the duty structure on Kits



https://www.siam.in/economic-afairs....8&pgidtrail=20


BMW and MB ships engine from EU Plants to Force Motors directly, most likely in semi-assembled form, and then FORCE assembles and ships to BMW/ MB India.

The difference in the duty of 15% helps these companies save a bit given the volumes. Audi may be getting everything together as their volumes are low.

Does BMW manufacture the engines here for export worldwide ? Typically engine manufacturing is restricted to a few factories cause they are the tricky ones to make.

If Force has started production of engines, I am not aware of it, but they may do soon given the advancements in manufacturing locally. I know that Volvo truck engines are produced in India and exported to the EU and other markets from India.

[abhatt]

Why are BMWs, Audis and Mercs so expensive in India? My friend in the US had got Q3 for 45k USD ~ 33l

Even with 50% localization the price seems exorbitant compared to the west where they earn much more too.

[Turbohead]

Originally Posted by abhatt

Why are BMWs, Audis and Mercs so expensive in India? My friend in the US had got Q3 for 45k USD ~ 33l

Even with 50% localization the price seems exorbitant compared to the west where they earn much more too.

In India, the central government, irrespective of political party, considers cars as sin goods and not a necessity.

Plus, the car buying population is small and insignificant as a voter base.