BMW is slated to clock its best-yet sales in the Indian market this calendar year, driven by strong consumer demand in the luxury segment. “This year, we expect to post our best-ever sales since inception,” Vikram Pawah, EO BMW Group India, told ET.
The German luxury carmaker expects its sales in the country to grow at least 40% in 2022, he said.
BMW India had sold 8,876 units in 2021. The company posted its best annual sales in 2018 when it sold 10,405 cars in India. “We have launched 26 products in the last two years, which have been received well by our customers,” Pawah said.
BMW India is currently sitting on pending orders for 2,500 vehicles.
Demand for its electric vehicles – iX, i4 and MINI Electric – has been better-than-expected, Pawah said. With a fourth model scheduled for launch in 2023, the company expects 10% of its sales in the country to come from EVs by the end of 2023.
BMW India has sold out the allocated batches of SUV iX. The all-electric MINI in booked out till the first quarter of 2023, and sedan i4 till the end of next year.
While studies are still on to gauge the feasibility of assembling electric vehicles locally, given that the initial response from consumers has been so encouraging, the company is working on increasing allocations for the market here to meet customer demand, Pawah said.
Globally, BMW is set to introduce 25 electric vehicles by 2023. Nearly half of them – the full electric ones – can be launched in India, provided the current incentives continue and adequate charging infrastructure is set up across the country, Pawah said. India currently levies a reduced GST rate of 5% on EVs.
Overall, Pawah said potential for luxury carmakers in India is promising given that it is among the countries with the highest number of billionaires while penetration of luxury vehicles at less than 2% of overall car sales is among the lowest among major economies in the world. The peak annual luxury car sales recorded in the country so far is only about 40,000 units in 2018.