Coronavirus Impact: BMW India Says Its Supply Chain Will Not be Delayed till June

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BMW India might additionally improve the annual manufacturing capability at their Chennai plant to 19,000 models from the present 14,000 models in a single shift foundation.

  • PTI
  • Last Updated: March 14, 2020, 11:25 AM IST
  • Edited by: Chhavianshika Singh

German automaker BMW doesn’t see any impression of provide chain disruption on its India operations until June because of the coronavirus outbreak, a prime firm official mentioned. The firm mentioned it should assess the impression of the outbreak on the merchandise coming in after June. “As of now, we are fine and comfortable for the next quarter (April-June). We have a very clear picture. On certain products which are coming out beyond the quarter, we will have to see how the coronavirus impact pans out,” BMW Group India President and CEO Rudratej Singh informed PTI. He, nonetheless, added it was a bit early to establish the whole impression of the outbreak on the provision chain.

“It is early days right now as the supply chain impact has a lag and I think the lag has not been fully felt by the industry yet. If it persists, things will get worse before they get better in terms of availability of supply chain and we are not seeing it right now,” Singh mentioned. The firm would watch the state of affairs arising out of the outbreak very rigorously going forward, he added. “It is a very fluid situation right now,” Singh mentioned. When requested to touch upon the gross sales outlook for the present 12 months, he mentioned: “We have been competitive relative to others as we have actually comparatively gained segment share last year and in that situation, we are confident that we will continue to be competitive this year as well.”

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The firm refreshed its whole vary with out ready for BS-VI transition and that might assist it carry out higher available in the market, Singh mentioned.”Today, we have the freshest portfolio in the segment and that has helped. It gives us confidence that we will continue to gain segment share. Looking at absolute numbers when there is a slowdown could be dicey,” he famous. BMW offered 9,641 models of BMW and MINI vary of vehicles in 2019. Singh mentioned the corporate is focussing on the localisation of its product vary within the nation and expects to hold on with the work going forward.

“Already, 95 per cent of our volumes come from locally manufactured products already. We are fairly high in our localisation levels over the last few years. We intend to make sure that our strategy going ahead also is in line where barring very very niche products we would look at all our volume products to be manufactured in Chennai,” he added. He famous that it does not make sense for native meeting of sure area of interest merchandise and electrical automobiles within the nation.

Singh, nonetheless, famous that if want be the annual manufacturing capability on the firm’s Chennai plant may very well be ramped as much as 19,000 models from the present 14,000 models in a single shift foundation. “We can go much higher than what we are selling now so we are very well taken care of in terms of our overall capacity for the next 3-4 years. But yes, the whole idea of supporting the Make in India initiative is something we are fully following,” he added. Not simply the manufacturing, the corporate has a regional buy workplace and an IT set-up for caring for necessities in Asia and different components of the world, Singh mentioned.

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This post was last modified on March 14, 2020 12:00 pm

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