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27. April 2008

India - BMW to tap local suppliers

Calcutta - German car major BMW is looking at India as a major outsourcing hub for auto components.

“It will take two to three months before we have an idea of the Indian market. At present, we source horns from India. We believe there is an enormous opportunity in castings and forgings. We do not have any Tier I supplier from the country,” said Peter Kronschnabl, president of BMW India.

The international purchasing office of the German firm’s Indian arm is evaluating around 100 companies in the country to identify potential suppliers for components such as software, chassis and panels.

Around 10 per cent of the company’s components are sourced from India.

The car manufacturer has set a target of selling 2,000 cars in India this year.

Kronschnabl said the car maker was considering the possibility of bringing the BMW Roadster convertible to India.

The company, however, has shelved the Mini launch for now. “We feel the market is not mature for a premium small car. However, we keep on evaluating the possibility of bringing different models to the country,” Kronschnabl said.

BMW plans to open small showrooms in cities such as Ludhiana, Jaipur, Coimbatore and Bhubaneswar.

This will take place in the second phase of its expansion of dealership.

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