German luxury carmaker BMW Group on Wednesday said that electric vehicle (EV) sales are growing better in India, but if the government announces some more subsidies/ incentives, the industry can increase the sales.
The company launched the all new BMW 5-Series priced at ₹72.90 lakh, new Mini Cooper S and the all-electric Mini Countryman priced at ₹44.90 lakh and ₹54.90 lakh respectively. The company also launched the all-new BMW CE 04, the first premium electric two-wheeler in India, starting at ₹14.90 lakh (all prices ex-showroom).
“I think it is extremely important there are strong incentives on EVs. India is on a transformation – transformation of the customers, transformation of the cars...strongest incentives from the State should be for EVs. Of course, plug-in hybrids are roads to the EVs,” Jean-Philippe Parain, Senior Vice President, Region Asia Pacific, Eastern Europe, Middle East and Africa, BMW Group, told reporters here.
He said in some countries where customers drive longer distances, plug-in hybrid vehicles can be a bridge, adding that incentives allow to bring an electric model to a price point where transition can happen towards an EV. “But if I were to speak for India, I would focus on the full transition to full electric vehicles,” he added.
Currently, hybrid vehicles in India attract taxes of 43 per cent, including GST, while battery electric vehicles attract a tax of around five per cent only.
Therefore, there is a potential for EVs in India and BMW Group is looking to drive in more products into the country, Parain said adding that besides battery EVs, it was also investing in internal combustion engine models, plug-in hybrids and also thinking about hydrogen vehicles as the company wants to remain flexible when it comes to technologies.
BMW is among the top sellers of EVs along with Tesla and BYD in the world.
Vikram Pawah, President and Chief Executive Officer, BMW Group India also said that EVs were suitable for India right now and penetration of EVs is encouraging. And, once the products are available across all price points, the segment will grow very fast.
Therefore, BMW Group India is also investing in establishing charging infrastructure to aid the growth of the segment, apart from introducing new models.