BMW denies plans to assemble bikes at Chennai plant

Earlier this month, there were rumours that German two-wheeler manufacturer BMW Motorrad was considering the option of local assembly of its motorcycles in India. Reports suggested that the company would use BMW's car plant at Chennai to assemble bikes from imported CKD kits. However, BMW India has now confirmed that it has no plans to use its current plant to assemble bikes.

BMW Motorrad has a collaboration with TVS Motors under which, it will build sub-500 cc bikes at the TVS facility in Mysore or Hosur. If BMW does consider local assembly of its bikes, it is more likely to use one of these plants. The company claims that its car and bike businesses are separate entities and their operations cannot be mixed.

Locally assembled models attract lower a rate of duty than CBUs. This makes it easier for foreign manufacturers to price their models more competitively. However, at the moment, it seems that BMW is quite happy to bring its bikes to India via the CBU route.

Source: Overdrive