BMW India posted strong sales performance in 2023. All three brands – BMW, MINI and BMW Motorrad – achieved record annual sales (January to December), thus maintaining their excellent performance. In 2023, the combined sales volume of BMW and MINI brand cars was 14,172 units. In addition, the BMW Motorrad division sold 8,768 motorcycles. The BMW iX and Mini 3-door Cooper SE became the brand’s best-selling electric vehicles (EVs) in 2023. The company reported that electric vehicle sales tripled in 2023 to 1,474 units. BMW’s sales last year increased by 18% over the previous year.
Ankit Sharma from technology shout had the opportunity to sit down with Mr. Vikram Pawah, President, BMW Group India, to get an insight into this development and the company’s future plans. Some responses have been edited and condensed for clarity.
Ankit Sharma: BMW’s sales figures for 2023 are very impressive. What strategies do you plan to implement in order to surpass these numbers in 2024?
Vikram Pawar: We are very confident about the acceptance and demand for new products launched in 2023. Supplies of these products were limited last year. As we evaluate the continued availability of these products throughout the year, we expect to see momentum. In addition to this, we will launch a total of 19 products in 2024.
These include 13 new vehicles and 6 two-wheelers. As these new products enter the market, demand will increase. However, we expect the positive sentiment on industry demand should remain intact. Consumer confidence is currently high and expected to remain strong throughout the year. Taking these factors into account, we expect 2024 performance to exceed 2023 performance.
Ankit Sharma: India is rapidly moving towards green energy with the government’s full support for the industry. How many EV sales has the company made so far? What are the company’s goals and plans in the field of electric vehicles?
Vikram Pawar: BMW has been working on the development of electric vehicles for the past decade. The company’s first electric car, the BMW i3, was launched in 2013. This demonstrates our early commitment to electric vehicles. BMW India sold a total of 14,172 vehicles in 2023, of which electric vehicles accounted for nearly 10%. In 2023, we sold a total of 1,474 electric vehicles, an increase of 325% from 2022.
BMW iX becomes our best-selling luxury electric car of 2023. Our goal is to increase the share of electric vehicles in our total sales to 25% by 2025. In addition, we plan to launch two new electric vehicles in 2024.
Ankit Sharma: A year ago, the average range of an electric car was typically 300 to 400 kilometers, but now the average range has risen to 600 kilometers, with BMW also hitting that benchmark. Some Chinese companies are currently pushing the 1,000-kilometer range barrier. What technological advances is BMW looking to achieve similar extended range for its vehicles?
Vikram Pawar: The driving range of all our electric vehicles is within the regional range, between 300 and 600 kilometers. I would communicate to clients that scope is more than just a number. The key issue is understanding customer usage. We are committed to serving our customers based on their usage. If your daily commute is only 40 to 50 kilometers, the impact of the extra miles will be less.
Let me give you an example of one of our Mini customers who doesn’t drive almost every day. Typically, these customers go on weekend trips and a trip of 280 to 300 kilometers is enough to meet their needs.
The 1000 km range is ideal for Europe or other countries where the average daily commuting distance is between 90 and 100 km. In India, most people commute around 40 to 50 kilometers every day. Our BMW customers also drive 40 to 50 kilometers every day. If we talk about battery technology in electric vehicles, we are already in the fifth generation and are developing the sixth. We are already at an advanced level.
Ankit Sharma: Do you think customers are still avoiding EVs because of range or charging infrastructure? What advice would you give to electric car buyers?
Vikram Pawar: Electric vehicles don’t just have one dimension. In addition to this, efficiency is also a factor in how quickly the battery charges. In addition to charging speed, battery efficiency, battery life, there are many factors and range that are important. This is a comprehensive package of services that we strive to provide to our clients. We guarantee our customers that the batteries will maintain 100% performance levels for seven years.
As far as charging is concerned, we provide users with free AC charging stations that can be installed in their parking spaces. In this case, our customers do not rely on any external charging stations. For intercity or long-distance travel, we offer convenient charging options with 56 fast-charging stations in 33 cities. We provide information about charging stations through our website and app to enable our customers to plan their routes efficiently.
Through our website and app, we provide our customers with information about charging stations so that they can plan their routes accordingly. However, I would like to advise potential EV buyers to purchase based on their usage patterns, similar to selecting the power of the engine based on their needs. Of course, if all gas stations and diesel stations in India install charging stations, it will undoubtedly boost the sales of electric vehicles in India.
Ankit Sharma: BMW India faces increasing competition from luxury carmakers such as Mercedes-Benz and Audi. There are also reports that Tesla may soon enter India. How does BMW plan to maintain its market share?
Vikram Pawar: Tesla operates around the world, and we operate around the world. The entry of more players into the market is beneficial as it not only enhances competition but also stimulates increased demand. Having been deeply involved in the Indian market for 16 years, we wholeheartedly welcome Tesla to India. India is a very important market for us and we are committed to continuously providing the best technology cars and services to the people.
