At the mega launch of the all-new BMW 5 Series Long Wheelbase, the fifth-generation MINI Cooper S, the all-electric MINI Countryman, and the BMW CE 04 e-scooter, Vikram Pawah, President and CEO of BMW Group India, highlighted how the group is redefining individual mobility by making it more human, intelligent, and responsible. In addition to the four launches, BMW Group India will launch 20 more products. In toto the calendar will have 24 launches including 14 BMWs, two MINIs, and eight more products, comprising six new models, three facelifts, and 15 new variants.
Strategic Vision
With brands like BMW, MINI, and BMW Motorrad, BMW Group India has set a clear agenda to continue growing the premium automotive segment, supported by a manufacturing plant in Chennai, a parts warehouse in Pune, a training center near Gurgaon, and separate entities like BMW India Financial Services and BMW India Foundation, besides, an extensive dealership network across major cities in India. Pawah said, “Right now, our focus is on growth. We've seen a significant increase, with a 21% growth in our car business across the two brands in 2023; we grew by 18% last year and 30% in the year before. This demonstrates our consistent and rapid expansion. With the introduction of new products in the second half, I expect even better results. Our strong performance in the first half sets the stage for an even more successful second half.”
Milestones
BMW Group India has achieved significant sales milestones, with over 141,000 cars sold under the BMW and MINI brands and more than 32,000 motorcycles with BMW Motorrad. Currently, nine models are manufactured in India, including the 2 Series, 3 Series Long Wheelbase, 5 Series Long Wheelbase, 7 Series Long Wheelbase, and SUVs like the X1, X3, X5, X7, as well as the fastest car produced in India, the M340i. These vehicles are made with 50% local content.
Growth In Luxury, SAV Segments
BMW's luxury class vehicles have seen a 17% growth, now contributing to 18% of total sales, with the X7 being the highest-selling model in this category. Sports activity vehicles (SAVs) have also shown a robust growth of 24%, contributing to 54% of total sales. The X1 is the highest-selling SAV in its portfolio. The three series, particularly the long-wheelbase version, is the best-selling sedan, accounting for 17% of sales, he pointed out.
Pricing
Regarding pricing of the recently launched cars and e-scooters, Pawah stated that the company has set price levels that are 'relevant to the customer. Based on research conducted during the development of this model, it was evident that customers desire this type of business/luxury sedan. Thanks to the efforts of our engineering, manufacturing, and purchasing teams, we have successfully met this demand. The same approach applies to the MINI Countryman. We have observed a growing interest in the electric MINI, reflecting customer preferences”.
Electric Vehicles
BMW Group India has been a pioneer in the luxury mobility space, launching the i8 in 2015 and leading the premium electric vehicle (EV) segment since 2022. This year, it became the first car manufacturer in India to exceed 2,000 EV deliveries. Notably, the BMW iX has surpassed 1,000 unit deliveries, and the i7, a luxury class model, reached 500 deliveries in May. The company boasts the most diverse EV portfolio in the country, featuring a range of models including the i4, i5, i7, iX1, and iX, along with two recent additions.
To support this mobility shift, the vehicle maker has established 51 DC fast chargers across its dealer network and plans to expand to 250 destination chargers by the end of 2024. Regarding the EV policy, he said that once the market reaches a certain volume threshold, local production becomes viable. While EVs are a relatively new phenomenon with encouraging results, current volumes are still low. However, as they grow, it is only a matter of time before it starts local production. “We aim to achieve over 10% by the end of this year,” he added.
EV Usage
Pawah mentioned that BMW's 2,000 EVs in India have collectively covered over 6.4 million kilometers, showcasing their significant usage. These vehicles have been charged over 68,000 times, with 55,000 instances using AC chargers and the remainder using fast DC chargers. This data indicates that AC charging is well-suited for Indian usage patterns, with an average AC charge time of 5.5 hours and a DC charge time of 1.78 hours. Most users charge their vehicles either in the morning after reaching the office or in the evening, averaging four to five charges per month, or roughly once a week. This demonstrates that range anxiety, often a concern in India, is largely unfounded, he pointed out. When comparing the usage patterns of electric vehicles (EVs) to internal combustion engine (ICE) vehicles in India, a few key observations stand out. Excluding intercity travel, the average usage for EVs falls between 35 to 42 kilometers per day across different categories of sedans and sports activity vehicles (SAVs). This intra-city usage pattern shows that EVs are perfectly suited for daily commuting needs. “As we continue to invest in expanding the charging network, we expect EV usage to increase and eventually match the levels of ICE vehicles, indicating a positive trend towards wider adoption,” he added.
Localization Regarding the localization of new models with innovative technologies, Pawah said the approach is gradual. Initially, basic localization is implemented and then expanded over time. Achieving 50% localization is a milestone reached progressively. BMW's international purchasing office, based in Gurgaon, plays a crucial role in this process by procuring parts for global production. Interestingly, many Indian suppliers contribute components for BMW's global operations, including future EV parts, showcasing the country’s growing importance in the supply chain. This is further demonstrated by active discussions with purchasing colleagues to increase India's exposure within BMW's central operations, aiming to make India a significant market for parts procurement. BMW's strategy in India revolves around adapting to local needs, investing in infrastructure, and leveraging the country's manufacturing capabilities. This approach not only meets the demands of Indian customers but also integrates India more deeply into BMW's global network, fostering mutual growth and innovation.
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