Success story of BMW in Chennai

Good infrastructure, logistics, accessibility, manpower and business friendly policies are synonymous with the Government of Tamil Nadu.

Robert Frittrang, Managing Director, BMW

Bayerische Motoren Werke AG (Bavarian Motor Works), commonly known as BMW or BMW AG, is a German automobile, motorcycle and engine manufacturing company founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent company of Rolls-Royce Motor Cars.

In 2004-05, BMW did an evaluation study to explore the feasibility of establishing an assembly plant for cars in India. Initially, BMW had identified 13 locations all over India including Chennai.

BMW interacted extensively with Guidance Bureau of Government of Tamil Nadu. Various sites were shown by Guidance Bureau to BMW. Finally, based on these discussions and site visits, BMW chose Mahindra World City (MWC) in Maraimalai Nagar near Chennai. BMW signed an MoU with Government of Tamil Nadu on 3rd December 2005 wherein the State Government committed to provide an attractive support package.

Availability of good infrastructure, the existence of local automotive companies, the availability of qualified workforce and last but not least, the strong support from Guidance Bureau and Government of Tamil Nadu were cited as the main reasons for selecting Chennai in BMW site evaluation study.

BMW India Pvt Ltd, a wholly owned subsidiary of the BMW Group was founded in 2006, with headquarters in Gurgaon, Haryana. BMW India has its own manufacturing facility at Chennai. The wide range of BMW activities in India include the establishment of a manufacturing plant in Chennai, auto parts warehouse in Mumbai and development of a dealer organization across major metropolitan centers of the country. The total number of employees at BMW India is 650. More than 1,200 additional jobs have been created in the dealer and service network.

State Government through MWC allotted 40 acres of land for the BMW Plant and the Guidance Bureau provided the Single window facilitation to implement this project. BMW has constructed the plant with a built-up space of 77707 sq. Metres. The factory in Chennai was inaugurated on March 27, 2007 by Mr.Norbert Reithofer, chairman of BMW AG.

This plant produces the BMW 1 Series, BMW 3 Series, the BMW 3 Series Gran Turismo, the BMW 5 Series, the BMW 7 Series, the BMW X1, the BMW X3, the BMW X5 and the MINI Countryman. The factory has the capacity to manufacture 11,000 units per year on a double shift basis.

BMW India have pledged their commitment to “Make in India” and said that they have already strengthened their commitment to the Indian market by increasing the level of localization at BMW Plant Chennai up to 50 per cent.

Some of the major auto components sourced for local production of cars at BMW Plant Chennai are: Engine and Transmission from Force Motors; Axles from ZF Hero Chassis; Door Panels and Wiring Harness from Draexlmaier India; Exhaust Systems from Tenneco Automotive India; Heating, Ventilating, Air-conditioning and Cooling Modules from Valeo India and Mahle Behr and Seats from Lear India.

BMW has been grateful and acknowledged the immense role played by the Guidance Bureau and Government of Tamil Nadu for the support extended to BMW Chennai to make it a success.

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Sept 2015

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Chennai Trade Centre, Chennai, Tamil Nadu, India
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10 Reasons to Choose Tamil Nadu

  • An economic powerhouse on a high growth trajectory
  • A global industrial and manufacturing hub
  • Robust physical infrastructure
  • Renewable energy capital of India
  • Innovation and Knowledge hub of India
  • Robust urban and social infrastructure with world class civic amenities
  • Strong tourism footprint
  • Path breaking policy initiatives and investor facilitation framework
  • New paradigm for industrial growth
  • Vision 2023 for inclusive growth and Development