Force Motors to assemble engines for BMW

From next year, Force Motors will assemble engines for German carmaker BMW’s Indian operations, according to at least two people in the know. Autocar Professional broke the news first on its website on April 29.

The Pune-based Force Motors will set up an engine manufacturing and testing facility at Chengelpet, Tamil Nadu, subject to all necessary approvals as informed by it to the Bombay Stock Exchange on April 29. Force Motors’ new plant is expected to start operations in early 2015 and the company will invest Rs 100 crore in the project.

There’s no official communication yet from Force Motors regarding the customer to whom it will supply the engines to. It is learnt that the new facility will assemble engines for every model under BMW and Mini brands that BMW India assembles. A BMW spokesperson, when contacted, said that “the company does not comment on speculation”.

The new move by BMW could help it bring down the cost of its locally assembled models. It is also to be noted that BMW had faced a probe by concerned authorities and reportedly was fined for alleged violation of import rules.

Force Motors already has a pact with another luxury carmaker, Mercedes-Benz, to assemble engines and axles, which it does at its facility in Pune.