May 17, 2008

BMW to source chassis and engines from India

According to a BMW AG board member, the company is assessing over 100 Indian component manufacturers before it begins to outsource engines and chassis for its global manufacturing operations.

The report quoted Mr Ind Herbert Diess who is on the BMW AG board as saying that “We are impressed with the quality of die casts and forgings in India that we use for our global operations. The quality of products from second and third tier is impressive. Once our pilot project evaluating 100 ancillaries is completed we will outsource engines and chassis for our cars.”

BMW purchasing office at Gurgaon in Haryana, currently sources motorbike handles and die casts from India. The India outfits of multinationals like Mico Bosch and Conti also supply it software solutions.