New Delhi: BMW India expects electric vehicles (EVs) to contribute around 30% of its sales in the second half of 2026, up from 26% in the first half, as rising EV acceptance and an expanding affluent customer base support growth in the luxury car segment, The Economic Times reported.
The luxury carmaker has maintained strong momentum in the Indian market, with total sales crossing 9,000 units, representing growth of more than 17%. The company believes there is significant room for further expansion as more customers move into higher price segments.
Hardeep Singh Brar, President and CEO of BMW Group India, said EV penetration is expected to increase further in the second half of the year, supported by a wider electric vehicle portfolio, improving charging infrastructure and greater acceptance of EVs among luxury car buyers.
According to Brar, EVs are increasingly becoming the preferred powertrain in the higher-end luxury segment. With modern luxury EVs offering driving ranges of around 500 km or more, concerns over range and resale value are becoming less significant among the target customers, he said.
On September 11, BMW India launched the latest version of its flagship 7 Series sedan along with its all-electric i7 variant. Both models are being locally produced at the company’s 50,000-unit-capacity plant in Chennai.
Local production is also central to BMW India’s growth strategy, with the company increasing localisation and sourcing more components from India. It is also diversifying its supply chain to reduce dependence on imports as it works to expand EV adoption across its portfolio.
Within the 7 Series range, EVs accounted for nearly 60% of volumes last year, with total sales of the model standing at around 700 units.
Luxury market expected to expand
Alongside electrification, BMW India is banking on the expansion of the country’s luxury car customer base. The company expects India’s overall luxury car market to more than double to over 100,000 units by 2030 from around 55,000 units last year.
Brar also pointed to rapid growth in the ₹40–50 lakh price segment, which he believes could encourage more customers to move up the value chain and enter the luxury car market.
The market for vehicles priced above ₹40 lakh has already crossed the one lakh-unit mark, while demand in the ₹40–50 lakh segment is growing rapidly and is expected to reach two lakh units by 2030, Brar said.
BMW expects some of these customers to eventually move into higher price bands as their purchasing power increases, creating a larger pool of potential buyers for established luxury carmakers.
The premiumisation trend is expected to support demand across BMW’s portfolio, from entry-level luxury models to flagship vehicles such as the 7 Series. The company aims to sell more than 1,000 units of the 7 Series in 2027, supported by the appeal of the latest model.
BMW plans presence in 50 cities
To tap the expanding market, BMW India plans to increase its retail presence to around 50 cities by March 2027.
Delhi-NCR, Mumbai, Pune, Chennai, Bengaluru and Hyderabad continue to be among its strongest markets, but the company sees further growth potential in smaller cities and emerging affluent centres.
The expansion will not be limited to adding dealerships. BMW is also considering modular retail formats that can be scaled according to the development of individual markets, allowing the company to widen its footprint while maintaining a premium customer experience.
Brar said network expansion would be accompanied by improvements in the retail experience, with BMW aiming to maintain consistent standards of luxury and customer engagement across its network.
The company is also expanding its definition of the luxury experience beyond its vehicles. It is increasingly focusing on curated experiences linked to motorsport, travel, fashion and other lifestyle events to strengthen customer engagement and position BMW as a broader luxury lifestyle brand.
