BMW India bets on first-time luxury buyers to expand mkt as EV sales surge

BMW Group India clocks record 18,001 car sales in 2025, driven by first-time luxury buyers and a sharp surge in electric vehicle demand

BMW in India closed 2025 with highest ever car sales of 18,001 units, marking a 14 per cent year-on-year increase, outperforming the broader market for luxury cars.  The strong finish was led by record sales of 6,023 units in October-December, up 17 per cent, underscoring sustained momentum even after the rest in goods and services tax in passenger vehicles. 

BMW’s growth is increasingly being driven by first-time luxury buyers, a segment the company says is vital to expanding India’s luxury car market, which is still nascent. 

According to Hardeep S Brar, president and chief executive officer, BMW Group India, the share of first-time luxury customers in BMW’s portfolio has risen sharply — from around 43 per cent in 2024 to nearly 49 per cent in 2025. In some models, the figure is even higher. 

“Expanding the luxury market cannot happen at the top end alone. It has to come from the entry point,” Brar said, adding that without continuously replenishing the funnel, long-term upgrade cycles would weaken. 

Nowhere is this strategy more visible than in BMW’s electric portfolio. The company retained its position as India’s top luxury electric-vehicle (EV) brand for the fourth consecutive year, selling 3,753 units last year, a sharp 200 per cent rate of growth over the previous year. 

EVs accounted for 21 per cent of BMW Group India’s car sales, up from 8 per cent a year earlier. 

BMW targets to raise the EV share to 25 per cent by the end of this year. 

At the heart of this surge is the BMW iX1 Long Wheelbase (LWB), which emerged as the highest-selling premium EV in India in 2025. The model accounts for well over 60 per cent of BMW’s EV sales, with around 55 per cent of iX1 buyers entering the luxury segment for the first time. 

BMW said the car’s real-world range of over 500 km, long-wheelbase comfort, and a lower cost of ownership had helped overcome EV-related anxieties, particularly among buyers upgrading from the mass market. 

BMW’s focus on EVs and LWB products has also paid off in scale. LWB models grew 162 per cent year-on-year to 8,608 units, contributing 50 per cent of BMW’s car sales, up from 29 per cent last year. Meanwhile, sports activity vehicles rose 22 per cent to 10,748 units, making up 60 per cent of volumes, with the BMW X1 leading the segment. 

Globally, India is fast becoming a more meaningful market for the German luxury carmaker. BMW in India now ranks among its top 20 markets by volume and is among the top five by the growth rate. 

While the volumes are rising, the margins remain under pressure due to currency volatility. The rupee has depreciated nearly 10 per cent over the past year vis-à-vis the euro, forcing BMW to balance price discipline with profitability. 

After 20 launches in 2025, the company plans 10 major launches this year. It raised prices by around 3 per cent in 2025 and plans another 2-3 per cent increase across the range this year, absorbing a significant portion of the foreign-exchange impact internally. “Luxury demand is relatively inelastic, but we are gradually increasing prices rather than passing on the full currency impact,” Brar said. 

Localisation of EV components depends on PLI, FTAs  BMW Group India has said localisation of EV components will depend heavily on how India’s production-linked incentive (PLI) scheme for advanced chemistry cells evolves. While the policy direction is encouraging, suppliers are not yet manufacturing at a scale or cost level that makes local sourcing viable.