BMW GROUP INDIA. INTRODUCTION.

24 June 2016. Yanyan Wu,Head of Governmental and External Affairs Asia. THE START OF A FLYAWAY SUCCESS. BMW GETS OFF THE GROUND.

BMW launched as a successful aero-engine manufacturer. Official date of establishment of BMW AG is 7 March 1916.

1916 toda y Page 2 CONSISTENT GROWTH. RECORD SALES IN 2015.

2.247.485 Sales 2015 BMW Group Sales development 2.117.965 [in units] 1.963.798 1.845.186 1.905.234 1.668.982 1.461.166 1.286.310 338.466

3.785

+ 6,1% 2009 2010 2011 2012 2013 2014 2015

Page 3 GLOBAL R&D AND MANUFACTURING.

R&D Production Contract Manufacturing Munich BMW Car IT BMW Group Research and Innovation Center (FIZ) BMW Group Research and Technology Hams Hall Motors Oxford Landshut Swindon Components BMW Innovation and Technology CenterKaliningrad VDL Nedcar, NL, MINI Goodwood Rolls-Royce Steyr BMW Development Center for Diesel Motors Steyr Motors Moses Lake Beijing Shenyang 3, 5 Series, X1, Development Motors Graz Mountain View Seoul Development Shanghai Technology Woodcliff Lake Tokyo Development Office Development Manaus BMW Motorcycles Newbury Park Cairo Rayong Designworks Kulim Berlin BMW Motorcycles Oxnard Dingolfing 3, 4, 5, 6, 7 Series Jakarta Engineering and Eisenach Components Emissions Test Landshut Components Center Leipzig BMW i3, i8, 1, 2 Series, X1 Rosslyn 3 Series Spartanburg X3, X4, Munich 3, 4 Series X5, X6 Araquari 3 Series Regensburg 1, 2, 3, 4 Series, (2015: 1 Series, X1, X3, MINI Countryman) Z4 Wackersdorf Components

Page 4 BMW GROUP IN INDIA. OVERVIEW OF CURRENT FOOTPRINT.

Headquarters National Sales Training Centre CompanyFinancial Services International Purchasing Office

Parts Warehouse

Plant Channai Vehicle Dispatch Centre

1/2007 3/2007 7/2007 10/2010 11/2011 12/2011 4/2014 1/2015 Set up of National Start of Production International BMW Financial New Vehicle New All India Parts State of the Art - Localisation at Sales Company BMW Plant ChennaiPurchasing Services, Gurgaon Dispatch Centre Warehouse, Mumbai BMW Group BMW Plant Chennai in Gurgaon Office opens Chennai Training Centre BMW GROUP IN INDIA. COMMITMENT TO INDIA.

BMW Group Commitment

6.4 billion Indian 4.9 billion Indian Rupees (€ 98 Rupees (€ 69 million) investment million) investment in in BMW Financial BMW India. Services India.

More than BMW India and BMW 1200 BMW Financial Plant Chennai employees in Services India together employ 610 BMW employs 90 people. people. dealerships. BMW GROUP IN INDIA. PLANT CHENNAI- WORLD CLASS FACILITY.

Models Currently Produced: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5 Annual Capacity: 14,000 per annum BMW GROUP IN INDIA. GLOBAL PURCHASING IN INDIA.

. Sourcing volume from India are steadily growing since the establishment of local International Purchasing Office in July 2007. . Currently BMW has 31 nominated suppliers. . Over 120 million EUR volumes were nominated in 2015 to Indian suppliers. . Majority of the projects are in single sourcing with smooth supply to BMW plants globally. In addition, IPO is also supporting the deeper localization initiatives for BMW India, Chennai Plant. . Cumulative volume comes close to 907 million EUR (since 2007). . The International Purchasing Team in New Delhi consists of 12 employees responsible for Purchasing, Quality Management and Logistics. BMW GROUP IN INDIA. GLOBAL PURCHASING IN INDIA. Chandigarh Raunaq Rico Auto Minda Industries Delhi NBC CE InfoSystems

Woco Motherson Synergies Castings Kolkata Mahle Behr Umasons Ahmadabad Tenneco Metalman Valeo Polyrub Aurangabad Mumbai Endurance Hyderabad Pune ZF Hero Ring Plus Aqua Motherson Elastomer Draexlmaier Engine Valve Denso Bangalore Steel Strips TVS Sundaram Clayton Suprajit WABCO Cochin Chennai Roots Horns 0 km 200 km 400 km 600 km JKM Dynamatics 2 W 4 W 2 W / 4 W Lear BMW GROUP IN INDIA. COOPERATION WITH TVS MOTOR COMPANY.

Page 10 BMW GROUP IN INDIA. COOPERATION WITH TVS MOTOR COMPANY.

. Strategic partnership to enter market segments below 500cc. . Focus on the development of a joint motorcycle platform. . First BMW bike to come to market in second half of 2016 (G 310R). It is BMW’s first bike manufactured outside of Europe. . Win-win cooperation by leveraging each other’s strengths. o BMW: leading R&D and & high standard of quality. o TVS: mass production know-how, access to local suppliers, knowledge of Asian markets. . 80% of bikes to be exported to world markets. . Bikes are manufactured at TVS Motor facility in Hosur, outside Bangalore. . Long term orientation of the partnership. If successful, additional variants could be added. Page 11 WHEREWHEREDIGITALDIGITAL MEETS MEETSPHYSICALPHYSICAL–– URBANURBAN MOBILITY MOBILITY OF OFTHETHEFUTUREFUTURE.. DR. IAN ROBERTSON. MEMBERDR. IAN ROBERTSON.OF THE BOARD OF MANAGEMENT. THANK YOU FOR MEMBER OF THE BOARD OF MANAGEMENT. YOUR ATTENTION.

24 June 2016. Yanyan Wu,Head of Governmental and External Affairs Asia.