BMW Appeals for Tax Stability
German luxury carmaker BMW Group India has made a strong appeal to the government to maintain the Goods and Services Tax (GST) on electric vehicles (EVs) at 5% in the upcoming Union Budget. BMW warns that any increase in tax rates could derail the growth of India’s nascent EV industry. The company emphasized that now is a critical juncture for EV adoption, and higher taxes would make EVs less affordable, slowing the momentum of sustainable mobility. BMW Urges Govt to Keep 5% EV GST
EV Penetration in India: A Nascent Market
Hardeep Singh Brar, President and CEO of BMW Group India, highlighted the low EV penetration in the country, which currently stands at just 4% of the passenger vehicle market. In comparison, developed nations have EV shares exceeding 10%, and China leads with 40%. Brar argued that increasing GST before reaching a critical “inflection point” could hinder widespread adoption. The high cost of manufacturing EVs, estimated to be 40–50% higher than internal combustion engine (ICE) vehicles due to battery prices, further strengthens the need for a stable tax rate.
Impressive Sales Growth Amid Challenges
Despite the challenges, BMW has experienced significant growth in India. The company delivered 18,001 vehicles across its BMW and MINI brands in 2025, marking a 14.4% year-on-year increase. Electric car sales alone surged over 200%, demonstrating strong consumer interest despite higher costs. Long wheelbase models and SUVs showed particularly robust performance, underlining BMW’s growing presence in the premium car segment.
Future Plans and Investments
BMW Urges Govt to Keep 5% EV GST as part of a broader strategy to accelerate EV adoption. The company plans to launch 10 new models in 2026, including six entirely new vehicles and four with significant updates. Three of these will be EVs, aiming to raise BMW’s EV penetration from 21% to around 25%. In addition, BMW is investing ₹400 crore to modernize existing dealerships and expand its retail network to 10 new cities, ensuring better accessibility for Indian consumers.
A Call for Policy Support
BMW Urges Govt to Keep 5% EV GST, not just to protect the company’s growth but to support the Indian EV industry at large. With the GST Council previously retaining the concessional 5% rate during the 2025 GST 2.0 reforms, BMW’s renewed appeal underscores the urgency of keeping EVs affordable during this critical growth phase. Stable taxation, coupled with aggressive product launches and infrastructure investment, could accelerate India’s journey toward sustainable mobility.
Conclusion
BMW Urges Govt to Keep 5% EV GST as a vital measure to ensure affordability, encourage adoption, and secure the long-term growth of the EV ecosystem in India. The luxury automaker’s proactive stance highlights how policy decisions today can shape the future of electric mobility tomorrow.
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