Mumbai: BMW is set to introduce 10 new vehicles in India this year, which will include electric vehicles (EVs) and its well-known MINI brand, while also enhancing local sourcing to reduce costs as luxury vehicle sales in the nation continue to be relatively low, according to its India CEO in a statement to Reuters.
Nevertheless, the German automaker achieved a record sale of 18,000 vehicles in India in 2025, marking a 14% increase compared to the previous year, thereby narrowing the gap with its competitor and market leader, Mercedes-Benz.
BMW anticipates sustaining the same growth trajectory this year with 10 new launches and 17 product enhancements, Hardeep Brar mentioned during an interview in Mumbai, noting that more than one-third of these will fall under the MINI brand.
Luxury Vehicles Constitute Merely 1 Percent of Total Car Sales in India
India is experiencing rapid growth in the luxury car sector; however, these high-end models account for only 1% of the total car sales, which exceed 4 million units. This is primarily due to the substantial import taxes that result in elevated pricing.
“The overall luxury market is not expanding. If we continue to compete solely within this 1%, we are not genuinely growing,” stated Brar.
To tackle this issue, he intends to introduce additional models and reduce manufacturing expenses by utilizing locally sourced alternatives to imported components.
Currently, BMW procures approximately 50% of its parts locally, including seats, engines, axles, and tires, for vehicles assembled in India. Brar is focused on increasing this percentage, although he did not provide further details.
Last year, BMW commenced local assembly of its iX1 electric vehicle in India, marking its first effort in this regard for an electric model. This initiative enabled the company to competitively price the vehicle against gasoline models and resulted in a 200% increase in clean car sales.
Electric Vehicles Account for 20 Percent of BMW’s Sales in India
Electric vehicles now represent 21% of BMW’s sales in India, a significant rise from approximately 8% in 2024. This growth has prompted the company to consider sourcing EV components, such as motors, locally, which could further reduce costs. Brar mentioned that these discussions are still in the preliminary stages.
Nevertheless, to ensure the continued growth of electric vehicles and encourage luxury automakers to invest in expanding their clean car offerings, it is essential for the government to uphold the current tax rate of 5%, in contrast to the 40% or higher tax rates imposed on gasoline vehicles, he emphasized.
“The overall penetration of electric vehicles in India is around 4%, but for the luxury segment, it stands at 10%. Therefore, we require a long-term strategy from the government that maintains the lower tax rate for a specified duration until electric vehicles can thrive independently,” Brar concluded.