Smooth run

Munich, March 18 (PTI): German car and bike maker BMW is looking to source parts for engines and chassis, for its high-end two-wheelers, from India. The company already sources, in small quantities, components for its cars.

According to BMW board member (international parts sourcing) Herbert Diess, “We have been sourcing motorcycle parts such as handle bars and die cast from India. Now we are planning to source components for engine and chassis parts.”

He said the company, which had set up an international purchasing office in India, had 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 to increase sourcing of car components from India,” Diess said. In sourcing of car components, BMW has been working with vendors such as Mico Bosch and Conti.

Diess however, declined to comment on the value of components that were being sourced from India and the possible quantity that BMW was looking to procure from the country. The international purchasing office has a strength of five people and is likely to be enhanced.

Diess said, at present, the company was not looking at re-entering the Indian bike market.

BMW board chairman Nobert Reithofer said the company was likely to hire more in India, though it had retrenched 2,500 in Germany and 600 at its overseas facilities.

“Last year, 200 jobs were created in India and if the market continues to grow, we have to think of developing it further,” he added.

The BMW group reported a net profit of 3.13 billion euros in 2007.