Force Motors has formally inaugurated the new Singaperumalkoil plant near Chennai which will be assembling engines for BMW portfolio of vehicles in India.
Force Motors is concentrating on contract manufacturing businesses to drive revenue for the company. The Pune based manufacturer is expecting to triple its revenue from the current Rs. 1000 crores to Rs. 3000 crores over the next three years through the same business. Force Motors just recently formally inaugurated an assembly plant in Chennai that will be used for producing and testing powertrains for German car major BMW. The plant can produce 20,000 premium engines every year and the capacity can further be increased to 50,000 units as well.
The new plant at Mahindra World City has become the first outsourced plant for BMW worldwide and through this, Force Motors has become the first company in the world to source powertrains to two of the largest luxury car manufacturers, Mercedes-Benz and BMW. The new Singaperumalkoil plant which is about 55 kms from Chennai, required an investment of about Rs. 200 crores to assemble and test diesel engines for BMW’s portfolio of cars and SUVs. Though this plant was recently inaugurated formally, it has been in operation since January 2015 and has supplied around 3000 units already. It will produce gearbox and other products as well.
Spread across an area of 5 acres, the plant’s operations have been ramped up as per BMW’s requirements and the facility employs a total of 100 engineers that have been trained by the German car manufacturer. The partnership will most certainly work out well for BMW because Force Motors has already supplied around 50,000 engines to Mercedes-Benz since their partnership which started in 1997. The same plant has a capacity to produce 14,000 BMW cars annually including the 1-Series, 3-Series, 5-Series and 7-Series models with as much as 50 percent localisation.