Tuesday, March 15, 2011

BMW Plan To Open Another Plant In India 2015


Here’s something that’s very hot emerging out of BMW’s annual press meet that just happened in Munich today. BMW India is all gung-ho about it’s Indian story with a brand new plant which it expects to put up by 2015.Along with that big move, BMW India also has upped capacity at it’s existing assembly unit in Chennai to 10,000 units per year.

With this latest move, BMW India might be the first amongst the German car makers to consider plans for a full fledged set up in India as 10,000 units coupled to a strong export demand requiring production of two to three times that number, is the minimum ballpark number for a car making operation to go full fledged.

Currently BMW India uses Completely Knocked Down(CKD) Kits shipped from Germany to assemble at it’s Indian assembly plant in Chennai. But, the purported definitional change of CKD, that the Indian government has included in the 2011 Union budget might just force this car maker to kick start a fully fledged operation in India, which we think is a strong possibility given the positive noises coming from BMW India. Meanwhile, over the past one year, BMW India has enjoyed double digit growth pipping arch rival and long time segment leader, Mercedes Benz from it’s top perch.


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