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Pune-based Force Motors will soon manufacture engines and other components for BMW. Force Motors already assembles Mercedes-Benz’ engines in India.

BMW 3 Series Gran Turismo nose live

BMW had announced during the Auto Expo 2014 that it will assemble the 3 Series Gran Tourismo in India, which went on sale recently.

After informing the Stock Exchanges that it will set up an engine manufacturing plant in Chengalpet, near Chennai, Force Motors announced the plant will manufacture engines and gearboxes for automobile companies. A report on Autocar Professional, however, confirms that the recipient would be BMW.

BMW’s vehicle assembly facility is located inside the Mahindra Research Valley, less than 10 km from Chengalpet where Force Motors’ plant is set to come up. Given the distance, it could very well be a just-in-time plant. This is also suggesting that BMW is planning a capacity increase.

The report mentions that this facility is to come up early in 2015 and that it takes in an investment of Rs 100 crore.

BMW X5 front three quarter right live

The 2014 BMW X5 will also be assembled locally starting 2014.

The development indicates that BMW intends to take the competition from its German counterparts, Audi and Mercedes-Benz, to the next level.

The effect of assembling engines locally is substantial on costs as it will reduce the cost of the CKD kit, which could bring some models under the $40,000 mark which attracts higher duty.

[Source - Autocar Professional]

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About Me

A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.

  • Bob

    Oh god, another car company willing to sacrifice quality to increase their profit margin. Seems BMW is going down the wrong road! Just like Jaguar and Rover used to be prestigious cars in their days, now their just crappy cars made at Tata Motors in India. No one I know would ever even think of buying one one of those anymore! Since I don’t like a lot of what BMW is doing I might start looking at Audi more.

    • Dr. Nayak

      Yap! Volkswagen in sheep’s clothing sounds good.

    • Mohit Verma

      Hey Bob, why you have a thought that the JLR products are crap. JLR is doing very well after TATA Motors acquired it and they have invested a lot shit of money into it. It is one of the best luxury vehicles company and offer brilliant products, don’t be biased towards Indian company.

  • Dr. Nayak

    Bharat made BMW engine is not a bad idea; good job Bayerische Motoren Werke AG. I will call it with love “Bharat Motoren Werke”.