German luxury carmaker BMW has stated that it is not interested in investing under the electric vehicles production policy declared by the govt earlier this year as it doesn’t supply a level-playing field and goes wrong in considering past fundings made by companies in the country.
“Although the policy is amazing because it promotes electric vehicles, it disregards long-standing enterprises in the industry,” BMW India president Vikram Pawah told TOI.
According to Pawah, the policy ought to have recognized businesses that were among the first to invest in India and, as a result, set different investment guidelines for them in contrast to those that apply to newcomers.
Vikram Pawah said, “A new player should have needed to invest at a different level than someone who has been here before. We seek the recognition of our prior investments. A level playing field is required.”
BMW has joined an increasing number of businesses that have declined to take part in the government’s new electric vehicle policy, which was widely publicized in mid-March with the intention of luring American Tesla. While Tesla is still being inflexible and has stated that its plans for India will take time, other global corporations, such as Hyundai and its sister company Kia, Mercedes-Benz, Volvo, Toyota, Honda Cars, and the Stellantis group, have also shown reluctance to embrace the new EV policy in the current climate.
The government is thinking about changing the policy to make it more profitable for companies to join in light of the industry’s poor reaction; some adjustments could be implemented soon.
Since starting business in India in 2007, BMW has invested 182.5 million euros (about Rs. 1,250 crore) in the country. The vehicles that it has imported include the i7, iX, i4, iX1, and Mini Cooper SE.
According to Pawah, the company has sold about 2,000 electric vehicles in the last 2.5 years, or about 10% of all the vehicles it has sold during that time. When asked if the business intended to have some of the models assembled locally, he replied that it was in the works. “It is just a question of time, and it might occur sooner rather than later. It is evident that the government takes its goal of EV adoption seriously,” Pawah said.
Additionally, the head of BMW stated that the assembly The BMW president added that the company is able to produce vehicles with any fuel type, including electric, hybrid, and petrol, due to its assembly operations in India.
