BMW which sources handle bars and die cast from India for its bikes has now decided to source components for engine and chassis parts. “Already we have been sourcing motorcycle parts such as handle bars and die cast from India. Now we are exploring to source components for engine and chassis parts,” BMW Board Member (international parts sourcing) Herbert Diess said. He said the company, which set up an international purchasing office (IPO) in India between 2006-07, has been running a pilot programme to increase component sourcing from India. “In the past few months we have visited over 100 suppliers and we are still in the monitoring stage for increasing sourcing of car components from India,” Diess said. BMW has started sourcing from India in a small quantity for cars as well, like software parts and has been closely working with vendors such as Mico Bosch and Conti, he added.
no idea of re-entry
Diess said the company was currently not looking at re-entering the Indian bike market after its initial attempts failed. The bike market in Indian being primarily for commuting, and didn’t suit BMW’s products, he added.Earlier in 1997 BMW introduced its F-650 in alliance with Hero group but sales failed to take off even after price was discounted to Rs 1.8 lakh (priced Rs 4.5 lakh when introduced). Soon after that BMW halted its indian two wheeler journey.