BMW’s business strategy: manufacturing close to its customers

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One of the top 3 automobile manufacturers in the world, headquartered in Munich, Germany, BMW Group is on a mission to spread its popular Mini to India. So they’re going to build them there.

According to a BBC News article, BMW Group is marking a new business trend by moving its factories closer to its customers.

«BMW is to begin building the Mini in India, in a move that suggests confidence in the country’s emerging car market.»

India has risen as a powerful new market for the multi-millionaire car manufacturer. BMW India started operations in 2007 and is now present in 22 different locations in the country. In 2011, it was ranked the 33rd most trusted brand in India by The Brand Trust Report.

By manufacturing within the country’s borders, BMW group will save on trade tariffs. «India charges 100% tariffs on the import of fully built cars, but just 30% on cars assembled domestically from imported parts.» 

This move will also position BMW as a leading car brand in one of the faster-growing markets in the world. Currently 1.5 out of every 100 Inidians own a car. That figure is expected to jump significantly in the next few years.

Tapping into emerging markets is a popular business trend nowadays, and one of the most accepted ways of ensuring leadership in the future.

Check out how Nestlé invests in emerging markets and how Nestlé makes friends in emerging markets through CSV (Creating Shared Vale).