BMW To Source Parts From Local Suppliers

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BMW India will partner with seven domestic suppliers to source parts for manufacturing its cars in India. This move is to keep the cars priced competitively in the country.

Force Motors, ZF Hero Chassis, Draexlmaier India, Tenneco Automotive India, Valeo India, Mahle Behr and Lear India are the seven domestic suppliers BMW has partnered with. Shares of Force Motors, which is located in Pune, increased 18 percent just after the announcement was made on Wednesday.

BMW will source engines and gearboxes from the Pune based auto maker, Force Motors.

Apart from engines and gearboxes, BMW will source parts like axles, door panels, wiring harness, exhaust systems, air conditioning and cooling modules and seats from local suppliers.

BMW is facing fierce competition for fellow German luxury carmakers like Audi and Mercedes-Benz. The company's sales too dropped more than 27 percent in India.

BMW sold 9,375 units in 2012, and managed to sell just 6,812 cars in 2014. The German carmaker has lined up as many as 15 launches for 2015, hoping to sell more.

BMW has also invested INR 390 crore at the company's manufacturing plant and parts warehouse located in Mumbai.

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