BMW pitches for retaining 5 pc GST on EVs

    Mumbai, Jan 8 (PTI) German luxury car maker BMW on Thursday pitched for retaining the current 5 per cent GST (Goods and Services Tax) on EVs, saying any further hike may be detrimental for the industry.
    Its electric car sales surged over 200 per cent in 2025, even as the overall car sales from its two brands -- BMW and MINI -- grew 14.4 per cent year-on-year to 18,001 units.
    The group said it also plans to launch 10 models, including six new ones and four with major changes this year.
    "I think the government has done a fantastic job in terms of managing the overall economy and making sure that we don't drop below the 7 per cent mark, which is very crucial for the country.
    "I don't think we have more expectations from them (the government). The only request, I think, would be not to touch the GST slab of EVs because it keeps coming back that the GST on these vehicles will be increased. (If it happens) I think it will be very detrimental," Hardeep Singh Brar, President and CEO at BMW Group India, told PTI in an interaction.
    Noting that the EV share in the overall passenger vehicle market was just 4 per cent against over 10 per cent in the developed countries and 40 per cent in China, he said, "We are probably one of the lowest (in terms of EV penetration). So, till we reach a certain inflection point where people are starting adopting EVs, it (hiking GST) will be quite detrimental".
    Also, the cost of EV manufacturing is still about 40-50 per cent more compared to ICE vehicles because of the battery prices, he said.
    "Till the time the battery cost comes down, I think it (increasing the GST) will be very detrimental for the industry. Hence, the request from the government is to keep GST for EVs at the same level of 5 per cent," he added.
    Terming 2025 as an "absolutely phenomenal" year for the group, he said the company has been growing at 13-14 per cent since the Covid-19 pandemic, faster than the overall industry.
    "Compared with the rest of the market, which is just growing about 5-6 per cent average growth rate, this (over 14 per cent growth) is more than double the average growth rate, clearly showing that BMW has taken a huge lead versus the rest of the market," Brar said.
    He also said that about one-third (6,000 units) of the total 18,001 cars sold last year actually came from the December quarter, which was festival season, post-GST 2.0 reforms.
     BMW Group India comprises BMW, the MINI brand of cars and the Motorrad brand of motorcycles.
    "Motorrad as well, we are moving towards bigger bikes, we were operating in 350cc majorly, but this year we will be launching a 450cc bike, a 1000cc bike. So, we are moving towards the core Viking, as we call it in our terminology, which are hardcore enthusiasts, and we want to focus on the top of the bike segment, which is really for the enthusiasts," Brar noted.
    At the group level, the company sold 23,842 vehicles -- "17,271 units of BMW, 730 units of MINI brand of cars and 5,841 motorcycles in 2025".
    In the BMW range, the company said the long wheelbase models continued to perform well, posting an over 162 per cent growth year-on-year with sales of 8,608 units, adding that the long wheelbase models now contribute 50 per cent to BMW sales as compared to 29 per cent last year.
    The 3 Series was the highest-selling premium sedan for BMW as well as in its segment, while SUV sales recorded a growth of over 22 per cent at 10,748 units, it said.
    The motorcycle segment was further bolstered with the rollout of the BMW R 1300 GS Adventure and the high-performance BMW S 1000 RR, the company said.
    Brar said the refreshing models at a frequent interval, launching more than 10 products annually since the last four years, and network upgrading have helped the company post higher sales numbers continuously since the last four years.
    On the electric car sales, he said that the company will definitely be growing at a better pace than its normal ICE cars this year.
    "Our penetration is about 21 per cent, while in Q4, it actually went up to 23 per cent because of the better supplies."
    He said the company plans to launch three new electric car models, which will increase its EV penetration level to about 25 per cent.
    "So if we are growing at 10 per cent or more overall, I think it will be a very strong double-digit growth in the case of electric vehicles," Brar said.
    The company started its product offensive in MINI from December and launched the convertible version, which was a runaway success, with all MINI convertibles being sold in the first month itself, Brar said.
    This year, we will be launching 10 new products, slash special editions in MINI, and we are going to double our volumes in the brand in 2026, he stated.
    He also said that the company is expanding its retail network into the smaller towns, which now stands at 40 cities with about 100 touch points. It plans to add 10 more cities next year.
    "We, along with our dealers, are investing Rs 400 crore into the Retail.next project, which allows dealers to sell BMW, MINI, and BMW Motorrad products under one roof," Brar said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)