Financial Daily from THE HINDU group of publications
Friday, May 17, 2002
Financial Daily from THE HINDU group of publications Friday, May 17, 2002 |
|
|
|
|
|
Corporate
-
Announcements BMW testing waters for local facility Our Bureau
BANGALORE, May 16 BMW, specialising in premium and luxury car models, is not averse to a production plant in India. The company, which two years ago put such a plan on the backburner on the grounds that the time was not ripe to embark on such a venture, is now re-evaluating the market for manufacturing a couple of its premium models. Mr Robert Bailey-McEwan, Managing Director (Middle East), said BMW did not think it fit to set up a production facility two-and-half years ago since the volumes were not enough. Even now, the company is cautious with too many players and excess capacity. A clear decision will be taken in favour of a CKD (completely-knocked-down) assembly facility only after ensuring that enough volumes and profitability could be achieved. It would also weigh the options of using surplus capacity by suitable tie-ups in the country. Talking to reporters here last night after handing over the key of the new BMW 7 series to its first customer here, Mr McEwan was guarded about the production plan in India and said it could mature in about two years. He said it would be imperative for the annual volume to be around 1,500 to 8,000 to set up an assembly unit. BMW is already operating assembly units in Indonesia, Malaysia, Thailand, the Philippines and Vietnam. It would consider factors such as cost, pricing, and above all profitability, to take a decision on setting up a plant in India. Currently, it is finalising plans to set up an assembly unit in China. World over, BMW has full-fledged factories only in a few countries outside Germany. Apart from the three in Germany, it has its factories in South Africa and the US. Talking about the BMW 7 series, an epitome of precision engineering combined with sporty look and comprehensively computerisation, Mr McEwan said India would be one of the important markets for the model. He said it was being positioned against the `S Class' of Mercedes. A popular car in the West Asian markets, the BMW 7 series, with a price tag of Rs 60 lakh, should become popular soon in the Indian market, he said.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|