New generation more brand-conscious than previous one: BMW India CEO

Our success story so far has been built on two main pillars. First, our electric vehicles — where we already have a 21% contribution to overall sales. When the government’s EV mission started, the plan was to have 30% EVs by 2030. I think in the car industry, we will be the only player to reach 30% before 2030 because we are already at 21%. In the next two years, we will reach 30%.

Other companies have shared projections in the media, but none have said they will reach 30% by 2030. We will likely achieve it by 2027.

Secondly, our long wheelbase models are doing very well. We have long wheelbase versions in the 3 Series, 5 Series, 7 Series, and X1 — and customers love them because Indian customers use the backseat a lot. The extra space in BMW is highly appreciated.

Third, as I mentioned, we are expanding our network in smaller cities to reach more customers. Fourth, our cost of maintenance is better than other players in this segment, and we will continue to work on that. These are the key areas we will focus on to expand our market.

We are growing at 13% right now (during January-September 2025), and the plan is to maintain strong double-digit growth. We can improve from 13% to an even better percentage. Strong double-digit growth looks like a definite possibility buoyed by two factors.

Firstly, the tax rate in our segment has gone down by 3 to 10%, resulting in an average price drop of about 6%. That is one of the biggest factors.
Secondly, we have this program called Joy Days, where we are offering special deals to customers. For example, we are offering 6.99% of interest rate on our financing plans for X3 customers. Apart from this, we have the 360-degree product, which gives assured buyback value to customers.
We are running programs that are very different from the market to give customers more confidence so that they keep coming back to us.

These schemes keep on changing. Whenever we make any new program, it’s based on customer apprehensions.
For example, when a customer is worried about resale value, we assure them of a guaranteed amount at the end of the tenure. Some customers say they don’t have enough money now, but their salaries are increasing year-on-year, so they’ll be able to pay more later.
That’s when we come up with balloon or increasing EMI schemes, where the EMI is lower in the beginning and rises later.
We analyze customer needs and create flexible solutions accordingly.

We also have an advantage — BMW Financial Services — which most other companies, especially in the mass market, don’t have. Since RBI guidelines for banks are stricter, they can’t offer such flexibility, but we can.

For example, banks cannot provide certain RBI-regulated programs. But similar schemes based on annual mileage or customized tenure are easier to offer through financial services. Those options are not possible with banks. That allows us to provide all these customized financial solutions to customers.

There are two things — premium vehicles and premiumization. In premiumization, customers want all the top-end features in a car. They don’t mind paying more but want every feature possible. Once they get used to that, they start aspiring for premium or luxury brands.

Their mindset evolves. They want not just features but also the brand value that comes with it. So, the aspiration shifts to owning a premium brand that represents their success.

We are seeing this trend grow steadily. The number of people declaring an annual income above ₹50 lakh has more than doubled in the last ten years, and by 2030, it’s expected to grow fivefold. As income levels rise, the proportion of people wanting to buy luxury vehicles will naturally increase.

We’ve seen the same pattern in housing. About 5% of buyers are now purchasing homes priced above ₹6 crore. That same shift is happening in the auto industry.
The new generation is even more brand-conscious than the previous one, and we expect strong momentum as Gen Z becomes active consumers.

The average age of our customers is declining. Earlier, people used to start buying luxury cars after the age of 45–50. Now, more than 60% of customers are below 45 years. It is naturally becoming lesser and lesser with every passing year. And as soon as Gen Z starts buying more, this age will decrease further over time.

The demand pattern there is even better because people have not experienced luxury there yet. In big towns, many already have. So, the growth rate potential there is greater and the growth rate is better. In Tier 2 and Tier 3, there may not be as many corporates, but the business class and small and medium enterprises are very strong. For them, buying a luxury or premium car is very aspirational.

(To tap into that demand), this year we are adding nine cities — for example, Calicut, Ranchi, Lucknow, Guwahati — and we will expand more in such places so that our cars are accessible to as many customers as possible.

It’s not that if more people buy, the premiumness will decrease. If I take the example of the Apple phone — its sales have increased a lot over time, but its premiumness is still top-notch. It’s not that it has decreased because everyone has started buying it.

Premiumness comes from the quality of the product, communication, and customer experience. These are the combinations that define luxury — not the number of people buying the product. As long as these things are maintained, the premiumness does not decrease. It’s not about volume but about the experience of the customer.