BMW India Goes Full Throttle on Local EV Manufacturing to Power Future Growth

Even though Tesla Inc. is yet to firm up its production strategy in India, other luxury carmakers are upping the ante in local production of their battery-driven models.

Luxury carmaker BMW is accelerating its electric vehicle (EV) ambitions in India, stepping up local production to meet growing demand. The German automaker has already commenced assembly of its first locally produced EV, the BMW iX1 Long Wheelbase (LWB), at its Chennai plant. This move makes India the first right-hand-drive market globally to receive a locally assembled iX1, underscoring BMW’s growing commitment to the Indian EV market, according to the company.

The iX1 LWB, a premium all-electric SUV, marks a milestone in BMW’s localization strategy. By assembling EVs in India, the company aims to reduce costs, improve accessibility, and strengthen its foothold in the rapidly expanding electric mobility segment, stated Hardeep Singh Brar, President and CEO, BMW Group India, in an emailed response to Republic Business.

A company source added that BMW plans to ramp up EV production with the upcoming BMW iX3, expected to be assembled at the Chennai facility by early 2027. “Built on BMW’s cutting-edge Neue Klasse platform, the iX3 will bring advanced electric technology and luxury SUV features to Indian customers, reinforcing BMW’s strategy to dominate the premium EV space,” revealed a well-informed source requesting anonymity.

India as a Key Hub for BMW’s EV Ambitions

With these steps, BMW is positioning India as a key hub for its EV ambitions in Asia. The company expects EVs to contribute around 30% of its total sales before 2030, up from 21% currently, driven by new models and rising adoption of green vehicles.

“We have done well in the electric segment and would like to build on that further. We may achieve 30% even before 2030, which is mandated by the government,” Brar had earlier told reporters.

Between January and September 2025, BMW Group India retailed 2,509 electric BMWs and MINIs, a 246% year-on-year growth, with the iX1 emerging as its highest-selling EV, followed by the flagship i7. The carmaker has surpassed 5,000 cumulative EV deliveries since 2022, when it began selling electric models in India.

Its current EV portfolio includes the i7, iX, i5, i4, iX1 LWB, and the MINI Countryman E, alongside the BMW CE 04 and CE 02 electric scooters.

Also Read: Luxury Car Buyers To Enjoy Festive Savings As Models From Mercedes, BMW, JLR, Audi, And Volvo Get Cheaper By Up To Rs 30 lakh | Republic World

Luxury EV Landscape in India

Earlier, Mercedes-Benz India kickstarted the local production of the EQS sedan and EQS 580 SUV at its Pune facility. Brendon Sissing, Vice President, Sales and Marketing, Mercedes-Benz India, stated:
 “We locally produce two world-class BEVs; however, there are no immediate plans for adding new BEVs to our local production portfolio. Our cumulative investment of Rs 3,000 crore is the highest in the luxury car market, and this will be further augmented to bolster local production, introduce new products, and adopt technologies based on future market demand and growth potential.”

Notably, despite the government’s new EV policy offering incentives for local manufacturing, none of the luxury carmakers — including Mercedes-Benz, BMW, Audi, or Jaguar Land Rover — have yet leveraged it to expand domestic EV production.