International
BMW plans 10 models for Indian market, more local sourcing
As part of a strategic push to grow its presence in India's emerging luxury market, BMW has announced plans to launch 10 new models and 17 product upgrades this year
In 2025, the automaker achieved record-breaking sales of 18,001 vehicles in India, a 14% increase that narrowed the gap with market leader Mercedes-Benz. Despite this growth, premium models continue to represent just 1% of India’s total annual car market, which exceeds 4.3mn units.
BMW Group India chief executive Hardeep Brar said the automaker plans to tackle this limited market penetration by launching more models while cutting manufacturing costs through increased local sourcing. BMW sources roughly half of its components locally (including seats, engines, axles and tyres) for Indian-made vehicles. Brar is working to raise this proportion, although he has thus far declined to offer specific targets.
So far, the strategy appears to be working — at least as far as electric vehicles (EVs) are concerned. Local assembly of the iX1 model, which launched in 2025, allowed competitive pricing against internal combustion engine-powered equivalents and fuelled 200% sales growth.
Now, EVs account for more than a fifth of BMW’s Indian deliveries — up from 8% in 2024 — prompting the automaker to evaluate sourcing electric motors locally to further reduce production costs. Brar acknowledged these discussions remain at early stages.
Brar is also urging the government to maintain the current 5% tax rate on EVs, which compares favourably against the 40% and above for internal combustion engine vehicles.
While EV market penetration remains quite low in India, he argues that premium buyers are driving the momentum. "Overall EV penetration in India is about 4% but for luxury it is 10%. Hence we need this long term strategy from the government, wherein the lower tax is maintained for a certain period of time till EVs can sustain on their own.”
More than one-third of BMW’s planned 2026 launches will arrive under the Mini brand as the automaker pursues growth momentum across multiple segments. The company delivered 17,271 BMW and 730 Mini vehicles in 2025, with long-wheelbase models proving particularly popular among Indian consumers, contributing 50% of sales.