BMW has voiced doubts about making investments under India’s new policy for the manufacture of electric vehicles (EVs), noting issues with the lack of acknowledgment for businesses that have been operating in the nation for a long time. BMW India President Vikram Pawah claims that although the strategy encourages the EV industry, it ignores the efforts of well-known companies like BMW that have been doing business and making investments in India for a long time.
According to Pawah, the current strategy does not level the playing field because it treats both new and established businesses equally without taking into account the latter’s past investments made in the nation. “For someone who has never played here before, the investment threshold ought to have been lower. We seek the recognition of our prior investments. “Level playing fields are necessary,” Pawah stated to The Times of India.
A rising number of businesses, including BMW, are refusing to participate in the strategy, which was unveiled in mid-March 2024 in an attempt to get foreign automakers—most notably Tesla—to make investments in India’s developing electric vehicle sector. Tesla is still apprehensive, though, and a lot of other international corporations—including BMW—have expressed disapproval of the policy’s existing structure.
Lower import taxes on some electric vehicles are part of India’s new EV policy, which was unveiled in March of this year with the intention of luring investment. However, the policy requires automakers to invest a minimum of $500 million and start manufacturing the vehicles domestically within three years. Companies may import up to 8,000 EVs with yearly prices of $35,000 or more under this program, with a 15% tax rate reduction. In comparison, the current import tax varies based on the value of the vehicle and can be as high as 70% or as low as 100%. The police.
The Indian government aims to hasten the shift to electric vehicles, increasing the percentage of EV sales from 2% of all automobile sales in 2023 to 30% by 2030. But the industry’s lackadaisical attitude has forced the government to think about changing the policy to make it more enticing.
After starting business in India in 2007, BMW has invested about 182.5 million euros, or Rs 1,250 crore, and has been bringing in a number of electric vehicle (EV) models, such as the i7, iX, i4, iX1, and Mini Cooper SE. BMW has sold about 2,000 electric cars in India during the last 2.5 years, making up about 10% of its total sales during that time.
Pawah also mentioned that it’s only a matter of time until the business increases its domestic manufacturing operations, suggesting that there may be plans in the works to construct some of BMW’s electric vehicles locally. “It is anticipated… We observe that the administration is committed to EV promotion and wants them to become widely used,” he remarked.
