BMW reassures Hams Hall over decision to begin Mini production in India
BMW has said its decision to start production of the Mini in India will not impact on its UK-based manufacturing facilities, which includes the Hams Hall engine plant in Coleshill.
The German firm said it was planning to start production of the iconic brand in the sub-continent in response to increased demand for the vehicle in the emerging markets.
In a statement, BMW said: “For the first time since the relaunch of the brand in 2001, preparations are under way for the local production of Mini cars for several growth markets outside Europe. As a result, cars from the British premium brand will be rolling off assembly lines beyond Europe for the first time later this year.
“Local production for the Mini Countryman is currently being prepared at the BMW plant in Chennai (formerly Madras), which meets the same stringent quality standards applied to all production of BMW Group models.
“The new MINI assembly facility has been brought on stream just a year after the start of MINI sales in India and will help to meet the steadily increasing demand for Mini cars in the Indian market.”
Five of the seven models in the current Mini range are produced at the BMW plant in Oxford, with engines supplied by Hams Hall and panels from Swindon.
The Countryman and Paceman, meanwhile, roll off the assembly line at Mini’s production and development partner Magna Steyr in Graz, Austria. They are also supplied with engines from Hams Hall.
“The BMW Group is investing heavily in the expansion and modernisation of the three locations that make up the Mini production triangle in Britain. Among the factors behind the move is the planned next stage in the expansion of the Mini model family, which will further bolster the brand’s global success,” it said.
The first models to be locally produced in Chennai will be the Mini Cooper D Countryman and the Mini One Countryman.
It said that in recent times India had become an increasingly significant market for the BMW Group, which has operated its own sales company on the sub-continent since 2007. At the start of 2012, Mini opened its first five showrooms in Delhi, Mumbai, Hyderabad and Bangalore.
BMW said the decision was in line with its “production follows the market” strategy.
“To carry out local production of the Mini Countryman in India responds to the burgeoning interest within the country in innovative and high-quality vehicle concepts. Mini is the first premium manufacturer to be represented in the locally ultra-important small car segment, and is expecting the Indian car market as a whole to experience high growth rates over the medium and long term,” said the group.
BMW’s Chennai production plant was built in March 2007 and produces the BMW 3 Series and 5 Series as well as the BMW X1 and BMW X3 models.
It said the ramping up of international production capacity was primarily aimed at providing a rapid and flexible supply line to the increasing number of customers in emerging markets.
A record 301, 526 vehicles were delivered to customers worldwide in 2012, with markets on the American and Asian continents making a particularly strong contribution to this 5.8% increase compared with the previous year.
“The Mini brand will continue to broaden its global perspective over the coming years, and the strengthening of its international production network is intended to assist in that process,” it added.
