BMW to source parts from India

GURGAON, Jan 22 (PTI): German carmaker BMW may have decided last year to scrap plans to bring its premium small car ‘Mini’ to India in 2009, but it is going ahead with sourcing components for the luxury marque from the country.

The company, which is eyeing the top spot in the Indian luxury car segment, today unveiled its new 3 Series sedan, whose petrol version is priced between Rs 26.90 lakh and Rs 32.9 lakh (ex-showroom), and the diesel variant between Rs 29.5 lakh and Rs 30.5 lakh (ex-showroom).

BMW, which set up an international purchasing office (IPO) last year in India, has identified a couple of suppliers as it looks to leverage the country’s low cost-high quality auto component industry. “Going forward we will see more of Made-in-India components in BMW’s global products. The purchasing office will source components not only for BMW cars but also for the Mini, along with bike parts,” BMW India Peter Kronschnabl told PTI here. He said the IPO, which has ten people so far, will see an addition of an expatriate, who will look after the sourcing for bike components.

Kronschnabl said the company was looking to source components such as forgings, castings and electronic parts. “As of now sampling is being done with the vendors who have been identified and we expect to sign contracts in a couple of months,” he said. The company had last year decided against bringing the Mini in India as its study found the market conditions not feasible. source: assam tribune