German carmaker BMW believes that local production of its electric cars in India is inevitable due to the increasing adoption of electric vehicles (EVs) in the country. According to BMW Group India President Vikram Pawah, EVs accounted for 9% of its sales in the first half of 2023, and he expects this figure to rise to 25% by 2025.
Local Production Plans Tied to EV Sales Growth
Pawah stated that as the volumes of EVs grow, BMW will follow its usual practice of localizing production to meet demand. He emphasized that the transition to local production is a matter of time, indicating that the company is observing the market and awaiting stable growth in EV sales.
BMW’s EV Sales Performance in India
In the first half of 2023, BMW sold over 500 electric cars in India. This marked a 46% increase compared to total sales in 2022. The company’s electric vehicles now have over 50% market share in India’s premium electric vehicle segment. Among them, the BMW iX stands out as the best-selling battery electric vehicle in the Indian market.
BMW- Battery Development Progress
BMW is already on its fifth generation of batteries and is actively working on the development of its sixth generation. Vikram Pawah said the company will evaluate local production of specific EV models. The evaluation will consider market conditions and technological advancements. The timing for production will be carefully assess.
BMW- EV Push Positively Impacting Indian Market
BMW is focusing on electric mobility in India. This is expected to boost the Indian EV market. India already has many small and large EV startups. The move by BMW can encourage more people to adopt electric vehicles in the country. It may lead to increased competition and innovation in the Indian EV industry. This could also result in more investment and job opportunities in the sector. The market already includes players like Hyundai, Tata, and soon-to-enter Lexus with its first EV launch planned for 2025. Furthermore, Tesla’s change in plans to manufacture electric cars in India also adds to the growing momentum of electric mobility in the country.
