BMW India, the Indian arm of the German luxury automobile manufacturer BMW has plans to source engines for its car models from the Indian automaker Force Motors. The Indian carmaker is already a supplier of engines to the luxury carmaker Mercedes Benz India.
Force Motors is reportedly planning to set up a new production plant in the state of Tamil Nadu with the aim of catering to the engine requirements of BMW India.
The strategy behind the decision by BMW India is to reduce its import expenditure and be able to lower the prices of its car products for its customers.
Mr. Prasan Firodia Managing Director Force Motors stated that the company plans to invest an amount of Rs 100 crore in order to meet the engine and gearbox requirements of an ‘international passenger carmaker’. He added that the operations at the new plant will commence from January 2015.