New Delhi: German luxury car-maker BMW and Tamil Nadu government on Thursday signed a Memorandum of Understanding for setting up a car assembly plant at a cost of Rs 180 crore (?20 million) at Mahindra city near Chennai.
The company, which currently sells over 150 cars in India annually, plans to launch the Indian assembled cars in the first quarter of 2007. It aims being the market leader in the premium segment.
Klaus Berning, VP Sales, (APAC, Africa, East Europe) says, "BMW is reconfirming this year that it is the market leader for premium cars and my primary target is to be the market leader in India too. That means selling 2000 or more BMW cars in India."
BMW executives say the cars will initially come in as completely knocked down units or C-K-D's and will be assembled here with about 10 per cent of local components, which could go up to about 85 per cent in 10 years.
Company officials say Indian suppliers would not just supply to its Indian plant but also to BMW plants worldwide, which would mean an opportunity worth millions of dollars.
Agrees Berning: "Its much more interesting whether we get suppliers working for our plants worldwide than increasing maybe 3 per cent of our local content here. I think globally it is more important your suppliers get a chance in our factories worldwide."
The company says a final decision will only be taken in a year or two and talks have already started with many potential suppliers.
Comments
0 comment