BMW to Step Up EV Play Here

BMW Accelerates EV Plans in India with Wider Range of Models

Source and Citation: Article excerpt from Economic Times, January 12, 2024

Analysis of this news for a layman

German luxury automaker BMW is aggressively expanding its electric vehicle (EV) lineup in India to maintain its dominant position in the market as EVs gain popularity. With 5 EV models already available, BMW captured over 50% of India’s still small EV market in 2023. However, it plans to launch 2 more affordable EVs this year to appeal to a broader customer base.

The goal is for EVs to make up 25% of BMW’s India sales in the next 2 years, up from the current 10%. The introduction of more affordable EVs at lower price points will play a crucial role in achieving this target. This strategy allows BMW to retain its leadership position as competitors like Tata, MG Motors, and others also accelerate their EV plans in India.

This EV push comes as BMW India achieved record sales in 2023, with 14,172 luxury cars sold. Sister company BMW Motorrad also saw a 20% increase in motorcycle sales due to surging demand. The strong growth is expected to continue in 2024 based on customer inquiries.

BMW plans to launch 19 new models across cars and motorcycles in India this year to capitalize on favorable market conditions. The expansion of the EV range will play a significant role in this product blitz.

BMW to Step Up EV Play Here

Impact on Retail Investors

For retail investors, BMW’s commitment to India and the EV market signals potential investment opportunities in automaker stocks with a presence in India. Companies like Tata Motors, Mahindra & Mahindra, and Bajaj Auto, which have growing EV plans in India, could benefit from increased demand for electric vehicles. Their share prices might see positive movement if EV demand in India accelerates.

Among auto ancillary stocks, companies that supply EV components and batteries stand to gain. This includes companies like Exide, Amara Raja, Minda Corporation, Sona Comstar, and others. Retail investors may want to review their exposure to the EV industry by considering these ancillary companies.

However, it’s worth noting that many pure-play EV stocks remain overvalued and risky. Companies like Ola Electric and Omega Seiki have uncertain futures, and investors should exercise caution. It’s advisable to wait for clearer industry trends before investing in such stocks.

Given the broader economic uncertainties, investors should consider accumulating auto stocks gradually rather than making concentrated bets. A long-term investment horizon of 3-5 years is advisable.

Impact on Industries

BMW’s accelerated push into the EV market in India is likely to have positive impacts on several industries:

Electric Vehicles: The introduction of more affordable EV models will expand the market’s potential customer base. BMW’s strong brand presence can convince more customers to transition from traditional internal combustion engine (ICE) vehicles to EVs.

EV Components: Higher EV sales will create increased demand for batteries, motors, controllers, electronics, and other components, benefiting suppliers. This could also lead to more manufacturing taking place within India.

Charging Infrastructure: BMW’s expansion in the EV market will require a robust charging network across India. Collaborations with charge point operators are expected to materialize.

Renewable Energy: The growth of EVs will result in increased demand for electricity. This could lead to more investments in renewable energy sources to meet the demand for clean mobility.

Electronics Manufacturing: As more EV production occurs onshore, it could boost India’s electronics manufacturing ecosystem, which has been lagging in recent years.

However, certain incumbent players may face negative consequences:

ICE Powertrain: Suppliers of traditional internal combustion engine powertrain components, such as engines, transmissions, and exhaust systems, may experience reduced demand as the EV market grows.

Fossil Fuels: Accelerated adoption of EVs may lead to a decline in demand for petrol and diesel in the long term.

Aftersales Services: The increase in the EV market share may impact traditional service centers that rely on servicing ICE vehicles.

Dealers: As sales of traditional ICE vehicles slow down, traditional dealerships that typically have higher margins on these vehicles may face challenges, even as EV volumes rise.

Long Term Benefits & Negatives

BMW’s significant investment in the Indian EV market offers both opportunities and risks in the long term:


  • First-mover advantage in the luxury EV sector in India.
  • Enhanced brand image as a sustainable and environmentally conscious automaker.
  • Increased customer lifetime value through an EV ecosystem lock-in.
  • Potentially higher profitability over time as EV costs decrease.
  • Alignment with India’s electric mobility and net-zero emissions priorities.


  • Stranded investments in existing ICE inventory, manufacturing plants, and infrastructure.
  • Disruption to the dealer network, affecting the sales experience.
  • A decline in revenue from aftersales services due to lower servicing needs for EVs.
  • Risks associated with cybersecurity threats and connectivity challenges.
  • Uncertainty regarding EV policies and infrastructure development.

If Indian consumers embrace luxury EVs more rapidly than anticipated, BMW could solidify its market leadership for the next generation. However, pursuing an aggressive EV-only strategy could backfire if market dynamics evolve differently.

Short Term Benefits & Negatives

In the short term, BMW’s EV push can deliver some immediate benefits but not without trade-offs:


  • Addressing early adopter demand for luxury EVs.
  • Gaining a competitive advantage by catching rivals off guard.
  • Enhancing the brand’s image as tech-savvy and environmentally conscious.
  • Attracting attention and consideration from mainstream buyers.
  • Establishing partnerships within the EV ecosystem proactively.


  • Diverting investments and resources away from expanding the ICE portfolio.
  • Managing inventory and manufacturing complexities while accommodating both powertrain types.
  • Potentially diluting the luxury brand’s appeal for traditional customer segments.
  • Addressing conflicts within the dealer channel due to EV disruption.
  • Experiencing a faster decline in revenue from aftersales and servicing.

With a balanced approach, BMW can cater to both luxury ICE and EV customers in the coming years. Overemphasizing an abrupt shift to EVs could lead to short-term complexities, while a gradual EV ramp-up allows for better management of these changes.

Impact of BMW’s EV Push in India:

Indian Companies Likely to Gain:

  • Tata Motors: As the leading EV player in India, Tata Motors could benefit from increased awareness and adoption of electric vehicles driven by BMW’s expansion. This could potentially lead to greater competition and innovation in the Indian EV market, ultimately benefiting consumers.
  • Mahindra & Mahindra: Another major automaker with growing EV investments, Mahindra & Mahindra could see increased demand for its electric vehicles as competition in the segment intensifies. This could push Mahindra to accelerate its own EV development and potentially gain market share.
  • Charging Infrastructure Companies: Increased EV adoption in India will necessitate rapid expansion of charging infrastructure. Companies like Tata Power, Adani Electricity, and Greenko could benefit from this growing demand, securing lucrative contracts and establishing themselves as key players in the EV ecosystem.
  • Battery Manufacturers: Indian battery manufacturers like Exide Industries and Amara Raja Batteries could see increased demand for their products as BMW expands its EV lineup. This could boost their production capacity and potentially attract further investments in the battery manufacturing sector.
  • Auto Parts Manufacturers: Companies supplying components for EVs like Bharat Forge and Endurance Technologies could witness higher demand as BMW ramps up its EV production in India. This could increase their revenue and profitability, benefiting from the overall growth of the EV market.

Indian Companies Potentially at Risk:

  • Traditional ICE (Internal Combustion Engine) Car Manufacturers: Companies like Maruti Suzuki and Hyundai, primarily focused on conventional gasoline and diesel vehicles, could face pressure from the growing popularity of EVs. BMW’s aggressive EV push could further accelerate this trend, potentially impacting their market share in the long run.
  • Tier-2 and Tier-3 Auto Parts Suppliers: Manufacturers primarily catering to the traditional ICE vehicle market might face reduced demand as the transition towards EVs gains momentum. Companies heavily reliant on ICE components could be at risk if they fail to adapt and diversify their product offerings.

Global Companies Likely to Gain:

  • Tesla: As a leading global EV player, Tesla could potentially benefit from increased awareness and interest in EVs in India generated by BMW’s initiatives. This could attract potential customers in the premium segment and potentially open doors for Tesla’s future entry into the Indian market.
  • European Luxury Carmakers: Other European luxury brands like Mercedes-Benz and Audi could be motivated to increase their focus on EVs in India following BMW’s success. This could lead to more competition and potentially a wider range of premium EVs available to Indian consumers.
  • Battery Technology Providers: Global companies like Panasonic, LG Chem, and Samsung SDI with expertise in lithium-ion battery technology could benefit from increased demand for EV batteries in India. This could open up new business opportunities and partnerships with Indian manufacturers.

Global Companies Potentially at Risk:

  • Oil and Gas Companies: Increased adoption of EVs in India could put pressure on the long-term demand for fossil fuels. Global oil and gas companies like ExxonMobil and Shell could face potential future risks if the EV transition in India accelerates significantly.

Disclaimer: This analysis is based on the information provided in the news article and should not be considered financial advice.

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