In a first of its kind move, German luxury car brands BMW and Mercedes have outsourced engine assembly to Indian automotive company Force Motors.
While Force Motors has been assembling engines for Mercedes cars for the last 18 years, on Tuesday it inaugurated a new plant exclusively for assembling engines for BMW. Force Motors has invested Rs 200 crore in the plant, which has the capacity to assemble 20,000 engines a year and can increase it to 50,000 engines.
The entire range of diesel engines for BMW series 3, 5, 7 and X1,3, and 5 as well as 3GT will be made at this plant. The plant supplied 3,000 engines between January and June this year, and this is a long-term relationship, says Force Motors chairman Abhay Firodia.
He added that achieving this feat is thanks to the experience of working with German OEMs over decades, of working with Mercedes and their own expertise in powertrain. Force Motors has also had technology tie-ups with ZF and Bosch, German auto component companies.
Apart from the new BMW plant, Force is now setting up a brand new modern plant for Mercedes at Chakan in Pune. It will come up by the end of this year. Firodia expects the plant to generate revenues of Rs 1,000 crore, which is in addition to what it will generate as an OEM. He expects this assembly business to grow to around Rs 3,000 crore in the coming years.
BMW’s global powertrain head Rolf Hattler hopes this facility will not only serve needs of BMW in India but also globally.