BMW Hikes Local Content for Indian Vehicles

BMW AG says it will reach 50% local content this year in the vehicles it assembles in India, up from 22% in 2013.

The company is now relying on local sources for axles, door panels, wiring harnesses, exhaust systems, heating/cooling modules and 2- and 3-liter diesel engines and transmissions.

BMW can produce as many as 14,000 vehicles per year at its factory in Chennai. The company says it will introduce 15 new or updated models in India in 2015, including 11 assembled locally. The carmaker also is expanding its dealer network to 50 outlets from 40 currently.

BMW sold 6,400 vehicles in India last year and an estimated 1,500 in January-March 2015.