BMW India reported a 14 per cent growth in 2025, outperforming the overall market, which grew at about 5–6 per cent. Representational pic
BMW Group India has called on the Centre to maintain the 5 per cent goods and service tax (GST) on electric vehicles (EVs) in the upcoming Union Budget 2026, stressing that any increase could hamper adoption and affect the automotive industry.
Hardeep Singh Brar, president and CEO of BMW Group India, told PTI that while the government has managed the economy well, the GST rate on EVs should remain unchanged.
"I think the government has done a fantastic job in terms of managing the overall economy and making sure that we don't drop below the 7 per cent mark, which is very crucial for the country. I don't think we have more expectations from them," Brar said.
He added, "The only request would be not to touch the GST slab of EVs because it keeps coming back that the GST on these vehicles will be increased. If it happens, I think it will be very detrimental because EV penetration is still about 4 per cent in India, compared to more than 10 per cent in developed countries, and 40 per cent in China. Until adoption reaches a higher level, increasing GST could hurt the industry."
Brar also highlighted that the higher manufacturing costs of EVs, which are 40-50 per cent higher than internal combustion engine (ICE) vehicles, and said the current GST rate helps bridge this gap.
BMW India reported a 14 per cent growth in 2025, outperforming the overall market, which grew at about 5-6 per cent, PTI reported.
The company sold 18,001 vehicles last year, with 6,000 units in Q4 alone.
Brar outlined BMW's ongoing strategy of product refreshes, network expansion, and electrification.
"We are now present in 40 cities with nearly 100 touchpoints and plan to add 10 more next year. Two major pillars of our strategy are electrification and long-wheelbase models," he said.
The company has significantly increased its EV penetration, from 8 per cent in 2024 to 21 per cent in 2025, with Q4 seeing a jump to 23 per cent due to better supply. BMW plans to launch three new electric vehicles in 2026, aiming to reach 25 per cent EV penetration in its portfolio.
BMW's MINI brand, which had limited new models last year, launched the MINI Convertible, which sold out in its first month. Brar told PTI that 10 new MINI models and special editions will be launched this year, with plans to double MINI volumes in 2026.
BMW India is investing Rs 400 crore in upgrading customer experience through lounges and enhanced dealership spaces.
"People are spending more time here, which increases brand engagement and loyalty," Brar noted.
(With PTI inputs)
