BMW Targets Affluent Indian Consumers in Emerging EV Market
BMW, the esteemed German automaker, has set its sights on India's emerging EV market, strategically aiming to appeal to affluent consumers in the country amidst a global shift towards sustainable energy solutions.
The company's ambitious plans were revealed by Vikram Pawah, President of BMW's India business, during an interview at the Bharat Mobility Global Expo. Pawah outlined BMW's vision for electric vehicles to comprise a significant portion - approximately 25% - of its sales in India by 2025.
In 2023, BMW achieved the sale of 1,474 electric cars in India, representing 10% of its total sales within the country. Having introduced battery-powered vehicles just last year, BMW currently boasts the widest range of electrified models among all car manufacturers in India.
However, while India's EV market shows promise, it remains relatively small compared to more established markets. Price sensitivity among consumers, along with concerns about charging infrastructure and subsidies, poses challenges to widespread adoption. Electric cars accounted for only 2.3% of total passenger vehicle sales in India in 2023, as reported by BloombergNEF.
BMW's strategic focus on India reflects a broader trend among global carmakers shifting towards emerging EV markets. Volkswagen AG, for instance, also sees India as a key priority for EVs this year, with plans to introduce fully-built electrified units initially and later expand local assembly operations.
Elon Musk's Tesla Inc. has signaled interest in the Indian market, planning significant investments and a visit to the country.
Aligned with its growth strategy, BMW aims to launch 16 new car models in India in 2024 and expand its dealership network to include four additional cities within three years. Despite expansion plans, BMW currently has no intentions to invest in additional manufacturing plants in the region, according to Pawah.
