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Homologation fee bothers BMW

MUNICH: The 200,000-euro fee that Indian authorities charge for homologating new car models for selling in India is bothering German luxury carmaker BMW, which wants to bring its small car model Mini in India by 2009.

“2009 is the 50th anniversary of Mini and we want to make it sure that the Indian customers also become a part of the celebration when we launch the model there. However, the homologation fee of 200,000 euros for a model is a big ask,” BMW Group Senior Vice-President Kay Segler told visiting Indian reporters here.

Homologation is the process by which car models are checked if they complied with the Indian rules, regulations and safety standards and the Automotive Research Association of India (ARAI) conducts the process.

“When we consider a model like Mini, we have to keep in mind the costs. With the homologation fee so high we are constantly discussing within the group,” he said, however, adding BMW was committed to launching the car in India.

He said the company, which had started a market feasibility study for launching the Mini in India, has received a good response from customers.

BMW is now looking to source parts for engines and chassis for its high-end two-wheelers from India.

“Already we have been sourcing motorcycle parts such as handle bars and die cast from India. Now we are exploring to source components for engine and chassis parts,” BMW Board Member (international parts sourcing) Herbert Diess said here.

He said the company has been running a pilot programme to increase component sourcing from India. “In the past few months we have visited over 100 suppliers and we are still in the monitoring stage for increasing sourcing of car components from India,” Mr. Diess said.

BMW has started sourcing from India in a small quantity for cars as well, like software parts and has been closely working with vendors such as Mico Bosch and Conti, he added. — PTI

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