MUMBAI, Feb 4 (Reuters) - The Indian arm of German luxury auto maker BMW Group on Wednesday said it will partner with seven domestic suppliers to source components for local production of cars at its Chennai plant in south India.
With the addition of the partners, which include Force Motors Ltd, Tenneco Automotive India and Lear India, the level of localisation at the company's Chennai plant will increase to about 50 percent, BMW Group India said in a statement.
Shares of Pune-based Force Motors, from which BMW will source engines and gearboxes, rose as much as 18 percent on news of the partnership.
BMW Group India said it will also source axles, door panels, wiring harness, exhaust systems, air conditioning and cooling modules and seats from the domestic suppliers.
The local partnerships will help the company optimise costs and set higher quality standards, it said. The company raised prices across its range of vehicles by up to 5 percent from Jan. 1. (Reporting by Aman Shah in Mumbai; Editing by Sunil Nair)