BMW India Increases Vehicle Localization To 50%


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Akash1886

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Friends,

Luxury car brand BMW in India has now increased the localisation in its vehicles to 50 per cent, as to keep with the Make-in-India program. BMW produces engines and gearboxes at its Chennai plant that has a capacity to produce 14,000 vehicles per year and the official added that about 95 per cent of cars sold in India are produced in Chennai itself.

"The higher localisation has enabled us to address challenges like inflation in emerging markets such as India," BMW Group India President, Philipp Von Sahr, told reporters here. He was replying to a specific query on the company's contribution to Make-in-India programme.
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Akash
 

TSIVipul

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Make in India is fine but what's the use if they are not passing any direct benefit to buyers? All they have said is "it will help in tackling inflation". Since they won't reduce the prices as of now, so the inflation will still mean a price hike and they will do it for sure.
I used to think that only Toyota is looting (The Indian made Camry is priced higher than the imported one after all)
 
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Akash1886

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Make in India is fine but what's the use if they are not passing any direct benefit to buyers? All they have said is "it will help in tackling inflation".
Of all the 95% BMWs which are made in India, I too feel them being CKD units still shall drill a deep hole in owner's pocket. Also adhering to the increased localization, the final quality of the vehicle will also likely see changes in my opinion. Pricing and Quality are 2 main aspects that BMW India needs to think about as well along with the localization.

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Akash
 
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Also adhering to the increased localization, the final quality of the vehicle will also likely see changes in my opinion.
Do you expect the quality to see change in positive or negative side?
If it is the later, sorry I don't agree. Quality depends on the price that OEs pay their vendors and not by the locality.
 
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Akash1886

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Do you expect the quality to see change in positive or negative side?
Satish What I meant was, with increased localization, at a comparatively lesser price the owners will get the good quality. But price wise, still BMW vehicles will be burning a hole in buyer's pockets.[:)]

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Akash
 
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