BMW Group's Indian arm on Wednesday said it will partner with seven domestic suppliers to source components for local production of cars at its Chennai plant.
With the addition of the partners, which include Force Motors, Tenneco Automotive India and Lear India, the level of localisation at the company's Chennai plant will increase to about 50 per cent, BMW Group India said in a statement.
BMW Group India said it will also source axles, door panels, wiring harness, exhaust systems, air conditioning and cooling modules and seats from the domestic suppliers. The local partnerships will help the Germany-based luxury auto maker optimise costs and set higher quality standards, it said. BMW raised prices across its range of vehicles by up to 5 percent from January 1.
Shares of Pune-based Force Motors, from which BMW will source engines and gearboxes, rose as much as 18 per cent on news of the partnership.