Luxury cars maker BMW Group India on Wednesday said that the country would see more cars in the price bracket of around ₹40 lakh by 2030 and the share of such vehicles is expected to grow from around 2 per cent right now to 5 per cent in 2030.
“If you start looking at luxury from a viewpoint of ₹40 lakh and above, I think it is already about 2 per cent to 2.5 per cent. I clearly see by 2030 this going to about 5 per cent. When you look at price bracket of cars priced between ₹15-25 lakh, I can clearly say that now they constitute about 20 per cent (of the overall cars market). So every two-three years you would see a jump of next ₹5 lakh category,” Hardeep Singh Brar, President and Chief Executive Officer, BMW Group India, told reporters here.
He said there aren’t enough cars in the price bracket of ₹25-50 lakh category currently, but by 2030 there will be a lot more in that price category and therefore that will get closer to the price bracket of luxury cars and hence the sales in that price bracket will grow.
In terms of growth for this year in the Indian luxury car market, Brar said the luxury car market is expected to grow by double digit growth.
“From BMW’s perspective, I don’t see any problem because of supply chain issue because we have an inventory of next two months. But, if it (war) continues then yes, the future models may get impacted. What I see here is a bigger impact on the economy because we are dependent on the global market. There are industries which are dependent on exports and the world is not in a good shape because of the current situation,” Brar said.
He further said BMW has lined up for the 27 new launches this year, which are under schedule, until and unless there is a disruption in supply chain due to the war.
Meanwhile, the company posted its highest-ever quarter one (Q1) sales this year, registering a growth of 17 per cent year-on-year (YoY) to 4,567 units as compared with 3,914 units in the same period last year.
The company also said the electric vehicles (EVs) continued leading the sales in Q1 with 1,185 BMW and Mini EVs, achieving 83 per cent growth YoY. Every fourth car BMW Group India sells today is an EV, Brar said adding that BMW Group commands the largest market share of over 70 per cent in luxury electric segment in India.