BMW Advocates for Stronger EV Incentives to Boost Market Growth

German carmaker BMW emphasized the necessity of government incentives to support the electric vehicle (EV) market's growth in India. BMW underscored the importance of ensuring the affordability of EVs and unveiled several new electric and hybrid models. BMW pledges to invest in diverse vehicle technologies and charging infrastructure.

German luxury carmaker BMW on Wednesday emphasized that government incentives are essential to foster the growth of the electric vehicle (EV) segment.

The company introduced the all-electric MINI Countryman and electric scooter CE04 in India, highlighting that the market is still evolving and requires continued efforts to smoothen and accelerate the transition to EVs.

At a press conference, BMW Group Senior Vice President for Region Asia Pacific, Eastern Europe, Middle East and Africa, Jean-Philippe Parain, stated, 'The strongest incentives from the state should be for EVs.'

Incentives make it possible to price electric models competitively, encouraging transition, he noted.

For regions with longer driving distances, like India, plug-in hybrid vehicles (PHEVs) can serve as a bridge.

'If I were to speak for India, I would focus on the full transition to electric vehicles,' Parain added.

India's total tax incidence on hybrid vehicles is 43 percent, including GST, while battery electric vehicles are taxed at about 5 percent.

Parain emphasized that there is potential for EVs in India, and BMW plans to introduce more products into the market.

The automaker is investing in internal combustion engine models, plug-in hybrids, and is considering hydrogen vehicles to stay flexible with technologies, he said.

Globally, BMW is among the top EV sellers, alongside Tesla and BYD, although sales in China have been impacted. 'India is an exception, and there is a need to sustain this growth,' Parain stated.

BMW Group India President and CEO Vikram Pawah said EV penetration in India is encouraging and is expected to grow once products are available across all price points.

Besides new models, BMW is investing in charging infrastructure to boost the segment's growth.

On Wednesday, BMW introduced the new 5 Series Long Wheelbase in India, priced starting at Rs 72.9 lakh, alongside the new Mini Cooper S and all-electric MINI Countryman priced at Rs 44.9 lakh and Rs 54.9 lakh respectively. BMW Motorrad also launched the premium electric scooter CE 04, priced at Rs 14.9 lakh.

(With inputs from agencies.)