BMW engines to be assembled in India by Force Motors
Force Motors which already assembles engines for Mercedes-Benz at its Pune facility will be setting up a new plant at Chengalpet in Tamil Nadu. The plant will have an investment of Rs 100crore and is expected to be operational by early next year, subject to procurement of necessary approvals.
BMW currently assembles the 3 Series, 3 GT and some other models in India
Prasan Firodia, MD, Force Motors, said, "The Board of Directors of the company have approved a new plant to be set up in Tamil Nadu which will be a dedicated facility to assemble and test passenger car engines, and other aggregates for an international original equipment manufacturer. This is a long term contract and will need an investment of Rs. 100 crores to set up the plant. The plant would be operational by early next year subject to the regulatory clearances."
That OEM (Original Equipment Manufacturer) in the quote is BMW. The new upcoming plant is located close to BMW's vehicle assembly facility, which is also located in the same area. The plant will not only manufacture but will also have a section dedicated to testing the engines of passenger cars.
This move by BMW could be another trigger for a price war between its rivals. This could happen because assembly of engines locally will have a significant impact on the duty applied to the CKD kit thus lowering the overall price.
- OpinionOn OVERDRIVE turning twenty...
- Review2018 Lexus ES 300h first drive review
- NewsThe OVERDRIVE 24 Hours Performance Run is coming your way this weekend
- NewsFerrari lays out plans till 2022, will build 'Purosangue' SUV
- News2019 Suzuki Katana to be unveiled on October 2 at the Intermot show
- News2018 Mercedes-Benz C-Class launched in India at Rs 40 lakh
- NewsNew-gen Honda CR-V to be launched in India on October 9
- NewsLive updates: 2018 Mercedes-Benz C-Class facelift India launch
- NewsImage gallery: Mercedes-AMG A35 revealed
- NewsMercedes-AMG A35 hot hatchback revealed ahead of Paris Motor Show