BMW India Targets Major EV Growth, Pushes for Green Tax
BMW India is setting its sights on a significant expansion of its electric vehicle (EV) presence in the Indian market. The company aims to see EVs account for 15% of its total sales by the following year, an ambitious leap from the current 7%. This aggressive target is backed by a strong product lineup, rising EV sales, and plans to expand charging infrastructure across the country.
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BMW Group India has enjoyed a stellar year, with year-to-date car sales up 10% in the first nine months of 2024. This growth highlights the increasing demand for luxury vehicles in India, particularly those with long-wheelbase models like the BMW 3 Series, 5 Series, and 7 Series. The luxury EV segment is also a strong driver, with the BMW i7 leading the charge.
Vikram Pawah, President of BMW Group India, stated, “We’re aiming to reach 15 per cent penetration by next year, depending on market conditions. Looking ahead, I believe we are going to maintain our 50 per cent market share in the luxury EV segment or even increase that.” This underscores BMW’s commitment to the EV market.
Supporting this growth, the company is advocating for a “green tax” structure. This would reward consumers who opt for electric or hybrid vehicles, and it will reduce emissions. Pawah believes that a green Goods and Services Tax (GST) would benefit EV makers more than a tax based on vehicle size or engine capacity. “The greener the car, lower the tax,” he said. “With that kind of gradient, people will naturally choose and migrate towards greener cars.”
BMW is also investing in charging infrastructure to support its EV strategy. With the target of installing 250 destination chargers by the end of the year, the company wants to eliminate “range anxiety”, a key concern for potential EV buyers. The initiative involves home charging solutions, dealer network charging, and destination charging at key locations, ensuring convenient access for EV owners.
Besides the EV push, BMW India is expanding its overall market share by focusing on first-time luxury buyers. The launch of Infinity Cars’ Retail.NEXT showroom in Mumbai, offering all three brands – BMW, MINI, and Motorrad, is part of this strategy. The new concept provides a premium, lounge-like experience, with plans to upgrade all 56 BMW dealerships across 33 cities to the Retail.NEXT format by 2026. This project involves an estimated investment of Rs 365 crore over three years.
