BMW, the renowned German luxury carmaker, has plans to commence local production of its electric vehicles (EVs) in India, a move that aligns with the growing demand for their vehicles in the market. Presently, 9% of BMW’s sales in India come from EVs, a figure expected to rise significantly to 25% by 2025.
Vikram Pawah, the President of BMW Group India, explained that as sales volumes increase, similar to their approach with other products, the company will localize and manufacture EVs in India. The localization strategy for EVs in the country centers around two key aspects: volume and technology.
While the company has only delivered 500 electric cars across four models in the initial six months of 2023, Pawah emphasized the promising growth rate. He confirmed the company’s leadership in the premium electric vehicles segment with over 50% market share, with the iX model being the best-selling battery electric vehicle in the Indian market.
Regarding EV technology, Pawah reassured that BMW has extensive experience in this area, having already progressed to generation five batteries since 2013 and currently working on generation six. The decision to localize specific EV models will be taken when technology and volumes reach a stable level.
Pawah expressed his optimism for the future, foreseeing EVs contributing to 15% of total sales in India by next year and possibly reaching 20 to 25% by 2025. Between January and June 2023, BMW achieved a combined total of 5,867 luxury car sales in India, encompassing both the BMW and MINI brands.
With the introduction of BMW’s EV global lineup in India, Pawah believes that the percentage of EVs in the market will naturally increase. The company’s focus on local production is driven by the growing traction and market potential for electric vehicles in the country.