The BMW Group is a manufacturer of luxury automobiles and motorcycles. It has 24 production facilities spread over thirteen countries and the company’s products are sold in more than 140 countries. BMW Group owns three brands namely BMW, MINI and Rolls-Royce.
The BMW Group sold approximately 1.29 million cars and approx. 87,000 motorcycles in 2009 and its revenues totaled 50.68 billion Euros.
BMW India is headquartered in Gurgaon, Haryana and is a 100% subsidiary of the BMW Group. India operations commenced on 29th March 2007, when BMW India officially opened its production plant in Chennai. The Chennai plant produces the BMW 3 Series and BMW 5 Series Sedans in petrol and diesel variants and has a capacity to produce 3000 units per year on a single shift basis. BMW’s initial investment to set up operations in India was Rupees 110 crores.
As of 2009, BMW India directly employed approximately 200 people with up to 600 additional jobs having been created in the dealer and service network. Currently, BMW has around 20 dealers and service centres across the country with aggressive plans to open additional dealerships.
BMW India has also established an International Purchasing Office (IPO) at its headquarters in Gurgaon. The IPO will focus on the development of exports from India to the BMW Group International Production Network and work towards increasing the sourcing share from India over the coming years. The activities include the identification and assessment of potential suppliers taking into account BMW’s requirements for quality, technology and logistics. The IPO will explore procurement of production material (components) as well as IT and Engineering Services.
In 2010, BMW Group introduced BMW Financial Services in India as a 100% subsidiary, headquartered in Gurgaon (National Capital Region). BMW Financial Services operates as a Non-Banking Finance Company (NBFC) in India. BMW Financial Services operates with its three business lines: Retail Finance, Commercial Finance and Insurance Solutions (through cooperation partners). The services offered through BMW Financial Services are significantly valuable to the premium clientele in India who require exclusive and flexible financial solutions.
In 1913, Karl Rapp founded a company called “Rapp-Motorenwerke” in a factory near Munich. It was a subsidiary of a company called “Flugwerk.” Rapp set up the company to produce his own aircraft engines, but these engines had various problems, hence the company went through initial troubles. During the same time Gustav Otto, build small aircrafts. Unlike Rapp who was suffering from problems in building engines, Gustav Otto’s business kicked off. Otto’s father was a very famous man, who had invented the four-stroke internal combustion engine.
In 1916, Gustav and Karl’s company merged together forming the Bayerische Flugzeug Werke or BMW - the Bavarian Aircraft Works. Rapp’s company headed by Franz Popp, was transformed into Bayerische Motoren Werke GmbH on March 7, 1916. After the merger with Otto’s company, the new company expanded very rapidly and the new company turned to Camillio Castiglioni for funding. Castiglioni and Popp later pushed Rapp out of the company.
In 1917, the new company developed its first aircraft engine, the Type IIIa. This engine was developed by Max Friz who was responsible for BMW’s product development. The German government bought this engine, thereby leading to BMW’s first major sale.
In 1919, BMW shifted to produce boar engines, truck engines and farming equipment. The company also worked on aircraft engines in hiding, as it was not allowed to produce it, and produced the Type IV engine.
In 1920, BMW could not sell enough air craft engines and started going into manufacturing brake systems, office furniture and work benches.
Bayersiche Motoren Werke (Bavarian Motor Works) or BMW was formed by three people – Karl Rapp, Franz Popp and Max Friz. In 1913, Karl Rapp set up an aircraft engine shop, but the engines made a lot of noise. At the same time, Gustav Offo setup his shop to build aircrafts, called Rapp Motoren Works. The two companies later merged.
Karl Rapp was born in 1882. He was a technical designer at Daimler till 1912. He was then involved in air craft engine production.
Franz Popp was the General Director of BMW AG from 1922 to 1942. He was born in Vienna in 1886. He studied mechanical and technical engineering. He was also in charge of developing the Mittenwalk railway. When he was serving at Pola, he heard about Rapp Motoren Werke. He wanted to make the Austro-Daimler engines there and was able to convince the authorities for the same. He then convinced Rapp to hire Max Firz, a very qualified engineer.
BMW’s mission statement is to "Become the most successful premium manufacturer in the car industry"
Their vision is: uniqueness through diversity, leadership, taking risks, and being courteous.
Karim Habib is the Head of Exterior Design for BMW Automobiles. Born in Beirut, Lebanon in 1970, Mr. Habib worked at the College Stanislas in Montreal, Canada for a period of seven years. After that he attended the prestigious McGill University and earned his Bachelor’s of Engineering degree. He also studied at the Art Center Europe and Art Center College of Design in Pasadena, where he earned a Bachelor’s in Transportation Design. Habib has held several positions in BMW and in March 2011 he was appointed the Head of Exterior Design at BMW.
Dr. Andreas Schaaf is the President of BMW India Private Limited. Dr. Schaaf was born in Haan, Germany in 1970 and joined BMW in 1996. He worked in the Production Department for 2 years; in the Corporate Strategy Department for 2 years; as the Head of Product Portfolio Management and New Product Concepts, Central Marketing for 2 years; Head of Product and Price Planning for Asia, Pacific, Africa and Eastern Europe, Sales for 3 years; and as Head of Market Development for Asia, Pacific and Africa for 1 year. In 2010, he joined BMW India and was appointed the president of the company. Dr. Schaaf studied Business Administration from the University of Bayreuth, Ecole Supérieure de Commerce Dijon as an Exchange Student, and did his Doctoral Thesis from the University of Bayreuth.
Christian Saffer serves as the Director of Marketing of BMW India Private Limited.
Rodney Woods serves as the Director of Finance, Human Resources, IT and Administration of BMW India Private Limited.
In 2007, the company opened its production plant in Chennai (Tamil Nadu) to sell cars exclusively to the Indian market. The BMW plant in Chennai produces the BMW 3 Series and the BMW 5 Series, both in petrol and diesel variants. The plant has the capacity to produce 3000 units per year. The German luxury car maker rolled out its 5-Series cars from Chennai at an ex-showroom price tag ranging between Rs.39.8 lakhs and Rs. 58 lakhs. The cars were produced both in petrol and diesel variants. While the 523i, 530d and 525d were produced as Completely Knocked Down (CKD) units in Chennai, the 535i was imported as a Completely Built Unit (CBU). The production facility in Chennai is BMW’s fifth factory in Asia and is a part of the company’s goal of selling 1,50,000 cars in Asia in 2007. The company made an investment of 20 million Euros to open this plant.
The production plant in Chennai, when it started in 2007 had a total workforce of 200 people. The plant also manufactures the seats and doors of the car but the rest of the parts are imported.
BMW has cars that come in both petrol and diesel engines. According to the company, the petrol engine has a High Precision Injection system that reduces fuel consumption and is part of BMW’s Efficient Dynamics system that aims to bring fuel efficiency to all BMW cars.
This High Precision Injection technology has the piezo injector which is positioned between the valves and the spark plug. This technology consists of a number of piezo crystals which expand when they come in contact with electricity. Improving car performance, the expansion causes the fuel-air mixture into the combustion chamber at 200 bar. The pressure causes very little fuel to be used, thereby making this technology an important feature of all BMW cars.
Since the piezo injections require only 0.14 milliseconds, many injections can be inserted in one cycle. There is an electronic system that adjusts the timing and dose of fuel injected into the system. This leads to a reduction in fuel consumption and increase in fuel efficiency.
BMW India is honored to receive the top automotive excellence awards in India and to be acknowledged by such a diverse and esteemed panel of judges. The new BMW 5 Series is a clear winner from the BMW stable. It has significantly contributed to the success and image of BMW in India. This sixth generation automobile has all the attributes of the ultimate luxury sedan. Commenting on the positive response received by BMW 5 Series, Dr. Andreas Schaaf, President, BMW India stated, “We are extremely pleased and excited with the enormous response that the new BMW 5 Series has received in the Indian luxury car segment. These awards are a testimony to the superior engineering, aesthetics and dynamics of the new BMW 5 Series.”
The BMW Company is an extremely successful manufacturer of automobiles and motorcycles globally and has Rolls-Royce, MINI and BMW brands. The company operates 24 production facilities in 13 countries and has a total dealership network in 140 countries.
The company has achieved a global sales volume of 1.29 million automobiles and 87,000 bikes for the 2009 year. As of 2009, the company employed a total workforce of approximately 96,000 employees.
In Asia, BMW sold 16,959 Minis in 2007, a 3.7 per cent increase from the previous year and had sales of 142 Rolls-Royce Phantom vehicles.
Graz, Austria is the region which produces the BMW X3 (E83). 45,973 X3s were produced in 2009. The Spartanburg plant in South Carolina, USA is the hub for production of the BMW XR (F25). The production figures as per the country in 2008 are as follows:
Germany - 9,01, 898 cars
Mexico - 1,00,000 cars
Russia - 2,000 cars
United Kingdom - 2,36,436 cars
Austria - 83,863 cars
USA - 1,70,741 cars
South Africa - 47,980 cars
BMW does not export any cars from India, according to the company.
BMW is launching the new 2 Series and is renaming the 1 Series Coupe and Convertible models to 2 Series. The company is expected to launch the BMW M2 not before 2014. The company is also launching the BMW 2 Series Coupe and Cabrio in 2013. The 2 Series boasts of new design movement and the Cabrio will be launched in soft-top and will have clean design lines and performance.
BMW plans to launch the 1 Series so that it includes the city compact, the Family Activity Sports Tourer (FAST) and a Gran Tourismo. The 1 Series will have an expanded wheelbase and have various features of the high end and Premium luxury cars. Stepping into the small car category, the company will also develop a Z2 and M2 model.
In India, BMW plans to open a dealership in Ludhiana in collaboration with Krishna Automobiles. According to the President of BMW India, Dr. Andreas Schaaf, the BMW dealership is expected to employ 30 people. There will also be a team of service engineers at this facility who would have received their training in Singapore, Malaysia and Germany.