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May 30, 2008

INDIA: BMW plans local sourcing boost

Similar to Volkswagen, BMW plans to increase component sourcing from India for its global operations, for which it is in the process of identifying more vendors.

Similar to Volkswagen, BMW plans to increase component sourcing from India for its global operations, for which it is in the process of identifying more vendors.

“We have been sourcing some components for bikes and also auto parts from India. Considering the increasing capabilities of Indian vendors, we are looking to source more parts from the country,” BMW board member (international parts sourcing) Herbert Diess told India’s Business Standard newspaper.

He was quoted as saying the company has been talking with local auto component makers and has already identified three or four potential suppliers, though he declined to give details.

A “moderate number” of motorcycle parts suppliers has also been identified – India has a large domestic two-wheeler manufacturing industry.

Business Standard said the company currently sources small volumes of car parts such as horns (it has said, see link, these are better than those bought in Europe) in India while its motorcycles business has been buying components like handle bars and die casts there.

But it now plans to source parts for engines and chassis for its high-end two-wheelers.

Diess also told the paper BMW is trialling Indian IT companies’ business software for its headquarters in Germany. He added that BMW might in future consider Indian software for in-car applications.

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