BMW
Vikram Pawah, President of BMW Group India, emphasized the necessity of rationalizing the duty structure for the swift adoption of new technologies, particularly electric vehicles (EVs). Pawah called for a level playing field in taxation, advocating for equal treatment of both existing and new players entering the Indian market.
“Our plea to the government has consistently been for a rationalization of the duty structure to drive faster adoption of new technologies and localization,” Pawah stated during a press conference. He suggested that reduced duties would enable companies to introduce products at competitive prices, facilitating demand creation.
Also Read: Jail construction not solution to decongest prisons, thinking out of box is: Tihar DG Sanjay Baniwal
Highlighting BMW’s strategy, Pawah explained, “Initially, we import products as Completely Built Units (CBUs), and as demand grows, we promptly localize production.” Currently, cars imported as CBUs incur customs duties ranging from 60-100%, depending on factors such as engine size and Cost, Insurance, and Freight (CIF) value.
Addressing discussions about potential concessions for a U.S.-based EV major, Pawah emphasized the importance of a level playing field for all players, regardless of their tenure in the market. He stressed that this fairness should extend beyond the EV segment to encompass all automotive sectors, considering the evolving landscape of cleaner and safer technologies.
Pawah also noted BMW’s continued investment in new technologies without expecting special incentives. Despite the luxury car industry’s modest share in India, accounting for just over 1% of overall passenger vehicle volumes annually, Pawah expressed optimism about the business outlook. He cited a robust economic environment and positive consumer sentiment, coupled with the availability of a comprehensive product lineup in 2023 and plans to launch 19 new products in 2024.
In conclusion, Pawah affirmed BMW’s confidence in sustaining solid growth throughout 2024, underlining the brand’s commitment to advancing technology and meeting evolving consumer demands.
