With its huge population and the emergence of the young, neo-rich entrepreneurs, the luxury car OEMs find great potential for their expensive products in India. Sales of luxury cars, both ICE and EV, have been on the rise and they are set to soar. “Apart from traditionally wealthy families, a new group of achievers has fast emerged in India with a global outlook. They are well-travelled and have an eye on luxury products. Young entrepreneurs and leaders are actively shaping demand for the luxury car market in Tier II and Tier III cities. With the rise in disposable income, they are not hesitant to spend on luxury products and services”, Vikram Pawah, told ETAuto in the CEO’s Take 2024.
.The excerpts:
Q: What is your vision for 2030 for the luxury car market, and automotive industry in general, in India?
The Indian luxury market is still at a nascent stage but has immense potential with a population of over a billion. The customer base has evolved tremendously in the past decade. Apart from traditionally wealthy families, a new group of achievers has fast emerged in India with a global outlook. They are well-travelled and have an eye on luxury products. Young entrepreneurs and leaders are actively shaping demand for the luxury car market in Tier II and Tier III cities. With the rise in disposable income, they are not hesitant to spend on luxury products and services.
Additionally, the industry has demonstrated resilience and determination in a tough environment full of new challenges. There is immense opportunity and headroom to grow and we are confident that the story of Indian automobile growth in this decade will be transformational.
Q: What is your view on the Union Budget 2024-25?
The new announcements in Budget 2024 regarding the automotive industry will expand and strengthen the e-mobility ecosystem by boosting manufacturing and charging infrastructure. OEMs and ultimately the consumers will benefit from a greater thrust on innovation, technology and sustainability. Extended support for the Production Linked Incentive scheme is good news as it will play an important role in advancing Indian automotive manufacturing and supply chain and promoting growth and competitiveness.
Q: What will be the key technologies that will shape the next decade of the mobility industry?
We believe there are three key action areas that will dominate the mobility of tomorrow: electric, digital, circular. Each of these on its own is already a challenging and inherently complex task. Combining all three aspects into a coherent overall concept is the ultimate challenge. This capability will determine future competitiveness in our industry. With the Neue Klasse (New Class) due to be launched in 2025, we will open up new dimensions in several areas – design, operating concepts, efficiency and sustainability.
Q: What is your view on electric vehicles for 2024?
Today, climate neutrality unites people, it touches our lives and mobilises us. Customers are now increasingly environment conscious and want to make an active contribution in reducing carbon footprint.
BMW Group took a proactive lead in e-mobility and has successfully retained its leadership in the electric luxury car segment for the second consecutive year. By blending driving pleasure with zero emissions, our luxurious offerings resonate with a growing clientele embracing a progressive and sustainable mind-set. We continue to set the pace in the Indian electric luxury vehicle market with the most diverse and innovative product range, designed to cater to diverse customer needs. A perfect example is the BMW iX which is the highest selling luxury electric vehicle in India.
With proven strengths, future-oriented technologies and a robust premium charging network, we are confident of taking this to the next level. One of the best fast-charging infrastructure in premium segment at BMW Group Dealer Network in 35 cities plays a vital role. In 2023, the contribution of EVs to total sales of BMW Group India was around 10%. In the near-term, we see the EV contribution going up to 25%.
At present, it is the consumers in urban markets that are driving the majority of demand but prospects from emerging markets are strengthening quickly in the medium to long-term. BMW and MINI dealerships have received many enquiries and bookings for the electric range from cities like Chandigarh, Lucknow, Kochi. The rate at which the adoption is taking place in markets beyond metros will help boost customer confidence at a larger scale.
The demand for premium electric cars is set to grow in India and government policies will play a deciding role in boosting adoption. Charging infrastructure and taxation benefits will drive faster adoption and market development. A strong public charging infrastructure will boost confidence among buyers. At the same time, private players are also helping by building their own infrastructure.
Q: After two consecutive years of record high sales for BMW India, what is your outlook for 2024?
BMW Group India has continued its success in 2023 by posting the best-ever annual sales (January – December) – for all three brands – BMW, MINI and BMW Motorrad. BMW Group India delivered 14,172 cars (BMW and MINI) and 8,768 motorcycles (BMW Motorrad). BMW sold 13,303 units and MINI 869 units.
We have very desirable brands and luxurious products. We have created bespoke experiences and services that ensure complete peace of mind and freedom to enjoy unlimited driving pleasure. The order bank is showing a very aggressive and strong build up. This is a good reflection of consumer sentiment and strength of our brands. As we change the game, our sight is set on increasing the market share and setting new benchmarks in 2024 and beyond.
In 2024, our product offensive includes 19 new products. (BMW – 11; MINI – 2 ; and Motorrad – 6).
Our focus on customer satisfaction is the key differentiating factor now and in future. Our interactions strive to exceed gratification and create delight, whether it is in the showroom, service bay, digital environment or at an experiential event.
We will grow our dealer network, developing not just the number of touchpoints but the highest standards in future retail. With Retail. Next Dealership concepts we have reimagined our customer-centric approach blending phygital innovation with modern aesthetics and engaging environment.
New customer engagements, digital outreach and campaigns will help attract new prospects to the BMW world. We have broadened the brand horizons for our customers by creating highly aspirational engagements such as BMW Joytown, M Town, The House of Forwardism, BMW Golf Cup International. Our collaborations with leading cultural platforms like India Art Fair and Kochi-Muziris Biennale bring our customers closer to Joy.
Owning a luxury car will never be inexpensive but BMW guarantees complete peace of mind with absolute transparency and zero surprises when it comes to ‘Cost of Ownership’. We enhance ownership experience throughout the entire lifecycle with valuable financial solutions like BMW 360° and attractive packages like Service Inclusive and Repair Inclusive.
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