Overview:
- Ambitious Sales Goal: BMW Group India aims to surpass 20,000 annual car sales in 2026, building on record-breaking performances in 2023 (14,172 units) and 2024 (15,721 units), with 11,978 units sold in the first nine months of 2025, up 13% year-on-year.
- GST 2.0 Boost: The implementation of GST 2.0 has reduced taxes on luxury internal combustion engine (ICE) cars to a uniform 40% slab, eliminating compensation cess, leading to price drops of up to Rs 9 lakh on models like the BMW X7, fueling demand, especially in the entry-level luxury segment.
- Strong SUV and Sedan Performance: SUVs, led by X1 and X7, accounted for 60% of sales (7,040 units, up 19% y-o-y), while long wheelbase (LWB) models like the 3 Series and 5 Series contributed 5,720 units, up 169% y-o-y, representing 50% of BMW’s car sales in 2025.
- Electric Vehicle Surge: BMW’s EV portfolio, including models like the i7 and iX1 LWB, saw a 246% y-o-y increase, with 2,509 units sold, comprising 21% of total sales; the company aims to reach a 30% EV share by 2027.
- Network and Product Expansion: BMW plans to add 11 new retail and service touchpoints in nine cities by 2025, targeting the top 50 cities by 2026, and will launch 15 new models across BMW, Mini, and BMW Motorrad in 2026.
- Luxury Market Growth: GST cuts are expected to drive luxury car market growth to 7-8% annually, up from 4.5-5% over the past decade, with the segment’s share in the passenger vehicle market projected to rise from 1% to 1.5-2% in five years.
- Two-Wheeler Dynamics: BMW Motorrad sold 3,976 units in 2025, with lower taxes on sub-350cc models boosting sales, while higher taxes on above-350cc models may pose challenges.
BMW Group India is poised to achieve a historic milestone, targeting over 20,000 annual car sales in India by 2026, driven by robust demand, strategic price corrections under the Goods and Services Tax (GST) 2.0 regime, and an expanding product portfolio.
In an interview with Moneycontrol, Hardeep Singh Brar, President and CEO of BMW Group India, expressed confidence in reaching this goal, citing strong market momentum and growing appetite for luxury vehicles. “We’re aiming for 20,000 units next year. The market looks promising, though global challenges like forex fluctuations could impact us. We’re optimistic but cautious,” he said.
Record-Breaking Growth Trajectory BMW Group India has consistently set sales records, delivering 15,721 cars in 2024, including 15,012 BMWs and 709 Minis, following 14,172 units in 2023. The momentum continued into 2025, with 11,978 cars sold from January to September, a 13% year-on-year increase. The third quarter (July–September) was the strongest yet, with 4,204 units sold, up 21% from the previous year, while September marked the company’s best-ever month, fueled by festive demand and post-GST price reductions. For context, rival Mercedes-Benz India sold 19,565 cars in 2024.
GST 2.0 Fuels Demand The GST 2.0 regime has unified luxury ICE car taxation at 40%, eliminating the earlier compensation cess, resulting in significant price reductions. Entry-level models like the BMW X1 saw price cuts of up to Rs 1.8 lakh, while premium models like the X7 dropped by Rs 9 lakh. Sedans such as the 2 Series Gran Coupe, 3 Series LWB, and 5 Series LWB saw reductions of up to Rs 4.1 lakh.
Brar noted that these cuts have boosted demand, particularly in the entry-level luxury segment around Rs 50 lakh. “Price elasticity is lower in luxury, but at the entry level, a price drop attracts buyers aspiring to enter the Rs 50 lakh bracket. Higher-end segments see less impact,” he explained. Additional income tax benefits earlier in 2025 further supported demand.
Product Portfolio Driving Sales BMW’s long wheelbase (LWB) models, including the 3 Series, 5 Series, 7 Series, and iX1 LWB, have been pivotal, with 5,720 units sold in 2025, a 169% year-on-year surge, accounting for 50% of BMW’s car sales. The 3 Series remains the top-selling sedan, holding a 16% share.
SUVs continue to dominate, with 7,040 units sold in the first nine months of 2025, up 19%, constituting nearly 60% of total sales. The X1 and X7 lead this segment.
Electric Vehicles Gain Traction BMW’s electric vehicle (EV) portfolio is witnessing rapid growth, with 2,509 BMW and Mini EVs delivered in 2025, up 246% year-on-year, representing 21% of total sales. Models like the BMW i7, iX, i5, i4, iX1 LWB, and Mini Countryman E, alongside electric scooters like the BMW CE 04 and CE 02, are driving this surge. Brar highlighted BMW’s goal to achieve a 30% EV sales share by 2027, ahead of the government’s 2030 target.
“Sustaining the 5% GST rate for EVs and improving charging infrastructure maintenance are critical for continued growth. While installation is decent, charger maintenance needs attention,” Brar emphasized. He also cautioned that policy ambiguity around hybrids could confuse buyers and derail EV adoption.
Expansion and Innovation BMW is expanding its footprint, planning to add 11 new retail and service touchpoints across nine cities by the end of 2025, with a goal to cover India’s top 50 cities by 2026. The company also plans to launch 15 new models in 2026 across BMW, Mini, and BMW Motorrad, following 15 product launches in 2025, including the upcoming Mini JCW Countryman All4 on October 14.
Luxury Market Outlook Brar predicts the luxury car market, which recorded 51,000 units in 2024, will grow at 7-8% annually due to GST cuts, compared to the historical 4.5-5% average. He expects the luxury segment’s share of the passenger vehicle market to rise from 1% to 1.5-2% within five years, driven by younger buyers aged 25-45 who prioritize premium experiences over savings.
Two-Wheeler Segment BMW Motorrad delivered 3,976 units in 2025, led by the locally produced G 310 RR and imported models like the BMW 1300 GS. The GST 2.0 framework lowered taxes on sub-350cc two-wheelers to 18%, boosting sales, while models above 350cc face a 40% slab, creating pricing challenges.
Brar remains optimistic about BMW’s growth, projecting strong double-digit growth for 2025, driven by a robust product lineup, strategic expansion, and favorable tax policies.
Source: moneycontrol.com
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