MUMBAI, 14 September 2023: BMW India, a prominent luxury automaker, is dedicated to embracing green mobility while acknowledging the co-existence of different automotive technologies to cater to diverse consumer preferences. In an exclusive interview with CNBC-TV18, Vikram Pawah, President of BMW India, shared insights into the company’s vision and its approach to diesel cars in the evolving landscape of green mobility.
BMW’s Leadership in Luxury Mobility
BMW India takes pride in leading the luxury automotive segment, particularly in the context of green mobility. Despite this leadership, it’s noteworthy that a substantial 30 percent of BMW’s sales in India still originate from diesel vehicles. The future of diesel cars, according to Vikram Pawah, depends on customer demand.
Navigating the Shifting Landscape
This response by BMW India comes in the wake of Union Road Transport Minister Nitin Gadkari’s call for a transition away from traditional fuels like petrol and diesel. Gadkari went a step further by proposing an additional 10 percent GST as a “pollution tax” to encourage cleaner alternatives. However, it’s essential to note that in a subsequent post on social media, Gadkari clarified that there is no active consideration of this proposal by the government.
“Minister Gadkari’s intention is to accelerate the adoption of green mobility,” affirmed Pawah.
Anticipating Growth in Green Mobility
As the festival season approaches, Vikram Pawah anticipates robust double-digit growth for BMW India. He highlighted that the demand for electric vehicles (EVs) has seen remarkable growth, with BMW India experiencing over a 5X increase in demand for electric vehicles. The company has secured a significant 50 percent share in the luxury EV segment, showcasing the growing interest in sustainable transportation alternatives.
Seeking Taxation Equality
Pawah also emphasized the importance of a level playing field in terms of taxation between the mass-market and luxury automotive segments. Currently, luxury cars face a tax rate that is twice as high as that imposed on mass-market vehicles. Pawah noted that there have been discussions about potentially reducing duties from 100 percent to less than 20 percent for certain imported EVs, although no official proposal has been confirmed.
BMW India stands as a beacon of green mobility within the luxury automotive sector. While diesel cars continue to play a significant role in their sales, the company remains adaptive to evolving customer preferences and the broader shift toward sustainable transportation. As green mobility gains momentum in India, BMW’s commitment to innovation and customer-driven choices ensures that it will continue to lead the charge towards a greener, more sustainable automotive future.
Stay updated for more developments in the dynamic landscape of luxury and green mobility.