While sedan sales have declined in the mass-market segment in recent years, demand remains strong for BMW sedans, which account for 45 per cent of its sales in India.
At a time when most mass-market carmakers are expecting low single-digit growth, BMW India is projecting strong double-digit growth in 2025, driven by demand for its electric vehicles (EVs) and long-wheelbase models.
The company sold 3,914 cars in the January-March period, recording about 7 per cent year-on-year (Y-o-Y) growth. In 2024, the company's car sales increased by 11 per cent Y-o-Y to 15,721 units.
“We have seen strong demand for our long-wheelbase models and electric cars. At the moment, we are outpacing the entire premium segment in India in terms of growth... We will grow in double-digit percentage terms again in 2025,” BMW Group India President and CEO Vikram Pawah told Business Standard in an interview.
While sedan sales have declined in the mass-market segment in recent years, demand remains strong for BMW sedans, which account for 45 per cent of its sales in India.
“At every price point, we have a sedan and an SUV, both are strong products, and the customer gets to choose,” Pawah said.
BMW India sold 646 electric cars in the January-March period, which was more than triple the numbers it sold in the corresponding period of last year. Pawah explained the reasons behind this strong uptick.
"The technology has to be fit for your use case. Our customers drive somewhere from 6,000 to 9,000 km a year. They have multiple cars in the household and private parking space. These three basic parameters are common with our customer base. We provide a charger as part of the car purchase. You're not reliant on public charging and as your usage is low, you're charging our EV only four or five times a month.
"Customers looking at BMW's EVs expect comfort, space, road presence, luxury and, on top of that, the savings in terms of fuel consumption.
"So, when you provide all those things in a mix, the electric adoption grows dramatically. The product should have the right fit," he added.
The company's motorcycle sales dropped 31.8 per cent Y-o-Y to 1,373 units in the January-March period this year.
Asked for reasons behind this drop, Pawah replied: "Nothing other than change of product supply and portfolio. This is a supply-driven issue and not a demand-driven one. A few things are being done to take care of the new regulatory norms, such as On-Board Diagnostics II (OBD II), and the product lineups will change with time. We will soon meet you about motorcycles and you will know the reasons in detail."
BMW India expects flat motorcycle sales in 2025.
OBD II norms require vehicles to monitor and report emission-related issues in real time.
Automakers implement them by adding advanced sensors, upgraded engine control units (ECUs), and improved catalytic converters to meet stricter emission standards.
BMW India has revamped 13 out of 56 dealerships under its Retail.NEXT project, which aims to modernise its retail network by mid-2027, Pawah stated.
The initiative will cover 56 facilities across 33 cities, with the company's dealers investing Rs 365 crore over the next three years.
Retail.NEXT brings BMW (car division), MINI (mini-car division), and BMW Motorrad (motorcycle division) under one roof and focuses on four key areas: design, digital tools, roles, and processes.
It introduces standardised dealership formats, digital interfaces, and personalised customer interactions, he stated.
Feature Presentation: Rajesh Alva/Rediff
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