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02. June 2008

BMW looks to India for parts, engg services

NEW DELHI - German luxury car maker, the BMW Group, is looking at the Indian market for high-level sourcing of automotive components, engineering services and IT software to develop its future technologies. It has set up an international purchase office (IPO) in Delhi to identify potential suppliers for its global operations.

BMW board member (international parts sourcing) Herbert Diess told reporters here in Delhi on Friday: “India is an important market for us and we recognise its engineering talent. We already source some components for bikes and auto parts for some of our cars and bikes from India. Considering the increasing capabilities of Indian vendors to provide quality spares, we plan to source more parts and services from the country.”

The BMW Group is negotiating with half a dozen Indian automotive component makers for sourcing car parts, and plans to increase the number of suppliers for its motorcycle business. BMW currently sources small volumes of horns for cars and handle bars and die casting for its motorcycles business, which runs into a few million dollars per year.

The company has not set any target for sourcing from India, unlike General Motors which is looking at $1-billion worth of components from India. “We are looking at all options and it is very early at this stage to gauge the sourcing potential. Our plans are firm and we need to study the Indian market as it should conform to our quality standards,” Mr Diess said.

It also has plans to source critical engine parts and chassis for its high-end two-wheelers in future.

The company is in talks with a few IT companies to develop in-car applications for its future models and use their software at its headquarters in Munich.

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