Forbes India
BMW Group India clocked 17 percent growth in the March-ended-quarter (Q1) sales on the back of its aggressive play in electric vehicles (EVs) and the entry-level segment, even as the broader luxury car market grew by just 3 percent.The luxury segment’s growth is far below the 18 percent growth seen in the overall auto industry.Luxury sales were impacted because of the situation in Iran, Hardeep Singh Brar, president and CEO of BMW Group India, said at a media roundtable. “Excluding BMW, luxury car sales registered a decline of about 2 to 3 percent in Q1.”Also Read: We are looking to be the No 1 player next year: BMW India CEODespite the headwinds, the company’s supply chain remains resilient. With about two months of inventory currently in the system, BMW said it sees no immediate disruption to its momentum.The automaker expects industry demand to recover if the ceasefire between the US and Iran holds and things starts to get back to normal. It is expecting high double-digit growth this year, broadly in line with its current trajectory.The bigger concern, Brar said, isn’t raw material prices, but currency volatility, which directly affects pricing in India’s import-heavy luxury segment.On India’s strategic importance for the brand globally, Brar said the country became the second-fastest growing market in Q1 from being in the top five earlier.EVs remain central to the carmaker’s strategy. BMW had more than 70 percent share in the luxury EV market in the quarter, up from over 60 percent a year earlier.Today, one in every four cars BMW sells in India is an EV, with the brand delivering 1,185 BMW and Mini EVs in Q1, a growth of 83 percent.Also Read: How a young India is redrawing the luxury road mapThe company’s growth has been supported by a deliberate push into entry-level luxury models, which continue to draw first-time buyers.Performance across segments was strong. Sales of long-wheelbase models (those with more rear-seat space) now account for more than half of the volumes. Sports utility vehicles grew by 38 percent and make up nearly two-thirds of sales. The Mini brand expanded by 42 percent, while BMW’s motorcycle division delivered over 1,200 units in the quarter.The carmaker is looking to build on this momentum with an aggressive product rollout. Of the 27 launches it has lined up for this year, four were introduced in Q1. The company is now preparing to hit the market with eight more launches in Q2.
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