German carmaker BMW has set its sights on the Indian electric car market as it aims to tap into the growing demand for clean energy vehicles in the country. The company expects electric cars to make up 25% of its sales in India by 2025, according to Vikram Singh, President of BMW India. This comes as the country's electric car market is still in its early stages, with consumers wary of purchasing expensive battery-powered vehicles that are not eligible for subsidies and facing a lack of charging infrastructure.
In 2019, BMW sold 1,474 electric cars in India, accounting for 10% of its total sales in the country. Currently, the company offers five electrified models, the highest among all car manufacturers. BMW entered the Indian electric vehicle market last year and now plans to increase its presence and market share.
While BMW is taking steps to capture the Indian market, other foreign carmakers are also showing interest in India's EV sector. Volkswagen, for instance, is making electric cars its main focus this year. The company plans to initially import fully-built electric units into the country and gradually shift towards local assembly of premium EVs after 2026.
Tesla's CEO, Elon Musk, has also expressed interest in India, stating that the company will likely make a significant investment in the country and visit it this year. This has further fueled excitement surrounding the potential growth of the electric car market in India.
However, challenges remain for the growth of the Indian EV market. Currently, electric cars represent only 2.3% of total passenger vehicle sales in the country, as consumers are deterred by high prices and lack of charging infrastructure. To encourage adoption, the Indian government is implementing various measures, including subsidies and the development of charging stations.
In addition to their electric vehicle plans, BMW aims to launch 16 new models in India this year and expand their dealership network to reach more consumers. However, BMW does not currently have plans to invest in additional manufacturing plants in India.
With its focus on capturing affluent consumers in India's nascent electric car market, BMW is positioning itself to be a major player in the country's clean energy push. As more car manufacturers enter the Indian market and government initiatives continue to support electric vehicles, the future of the Indian EV market appears promising.