The Hindu Business Line : BMW to source components from India

New Delhi May 29 BMW said that it would set up an International Procurement Office in Delhi by August to source components from India for its global operations.

"We will soon set up an International Procurement Office in Delhi headed by expatriates who will study the market and decide on the kind of products that would be sourced from here," said Mr Peter Kronschnabl, President, BMW India.

No addl investment

However, the company would not be incurring any additional investment for its procurement office except in human resources, he said.

The company did not disclose the amount of procurement it would do from the Indian market or the products it would source and the suppliers with whom it would partner.

At present, the company is sourcing IT products from here, he said, adding that it was also looking to collaborate with Indian majors on software development for its future technology, declining to give any precise product details.

Eyes higher sales

BMW India that commenced production here in April this year has sold 107 cars, which includes 76 models of three series. The company expects to sell about 300 models by the end of this month, up from 257 units sold during the entire last year.

BMW has also begun production for its 5 series models that would be launched next month.

Considering the order intake, the company has also revised its sales forecast to 1,200 units from the 1,000 units, said Mr Kronschnabl.

He said that the company would be expanding its presence at Ahmedabad, Kolkata, Kochi, one more in Delhi, taking its dealer network to 12 from the current 8.

New models

BMW India also has plans to introduce its X3 and X5 models in the Indian market this year.

BMW that has 16 of its cars painted by artists over the last 30 years is bringing two of its original models of M1 and M3 for display at the Jehangir, Art Gallery, Mumbai.