BMW Starts Motorcycle Production At Its Thailand Facility

In an attempt to be ahead of the Asian motorcycle manufacturers in terms of meeting the demand, BMW has opened a new motorcycle assembly at the company’s Thailand facility. As of now, BMW has started off with the production of F800R roadsters but eventually it will consider more models for the assembly line, making the Thailand facility a proper production hub. The F800R will be built from CKD kits.

While BMW does run facilities in Brazil, though jointly, the Thai facility is BMW’s first fully-owned two wheeler assembly plant outside of its home country. The facility covers 13,000 sq-ft. and is situated in Rayong, a city located in the east coast region of Thailand. Interestingly, the Thai facility is also the only BMW plant which produces both  motorcycles and cars as well as MINI models.

“The motorcycle assembly in Rayong is an important next step in implementing BMW Motorrad’s growth strategy,” says Stephan Schaller, head of BMW Motorrad. “With the local production of the BMW F800R, we will strengthen our market presence in Thailand. We expect significant sales increases in this growing market in the years to come.”

To meet the demand in Thailand, BMW has been importing motorcycles from Berlin, thereby attracting import levies adding as much as 60 % to the cost of the product.

“As the BMW F 800 R is produced locally, it comes with an affordable price tag, which in turn means that we will be able to step up our market position in the long term,” says Schaller. “The first BMW motorcycles made in Thailand will be available through the BMW dealership network from the first quarter of 2014 on.”

Initially the company is aiming at producing a limited number of units but gradually as it adds more models to the assembly line, the number will rise up. BMW also plans to produce other models for Thailand and nearby Asian markets.

“This is the first time that we use an own BMW plant location abroad for our motorcycle production. In the medium term, we will explore further options on how to expand BMW Group Plant Rayong in order to include the production of additional BMW motorcycle models for other Asian markets,” says Schaller.

Source – BMW
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