To push demand for luxury automobiles in India, it can be crucial to develop highway infrastructure and to normalise the tax regime, which, within the present type dissuades individuals from shopping for luxury automobiles, BMW Group India President Vikram Pawah mentioned.
“…as the road network gets developed, I’m sure you know people will like to drive even better cars… The second part is on the regulatory or the taxation policy… Currently, people are dissuaded from buying luxury cars because of the taxation regime, the way it exists…To some degree, we are depriving ourselves as India…that we are not able to experience the same technology, the same luxury, the same facilities that our counterparts in the world enjoy,” Mr. Pawah mentioned, replying to a question.
“Taxation needs to be normalised so that people can choose the latest technologies. Currently, a level playing field is not provided… people are not allowed to choose the latest technologies they want to try. Once those things are corrected, you will see the market booming again for luxury cars,” he added.
Mr. Pawah, nevertheless, added that he anticipated the BMW model to proceed to grow on the again of latest product launches. “We are in the midst of the biggest product offensive and we will continue to introduce products over the next 18 to 24 months that that will excite the market.”
The German luxury car maker on Thursday launched the first-ever BMW 2 Series Gran Coupé in India which shall be produced at BMW Group Plant in Chennai. The car, with a beginning worth of ₹39.30 lakh, shall be obtainable instantly within the diesel variant, whereas the petrol model shall be launched later.
Asked about taking the primary spot in India’s luxury car market, Mr. Pawah mentioned, “Being number one in a very small pond is not an achievement. For me, the achievement is to be number one in increasing the size of the market, driving the growth of the market, outperforming the segment, making sure that we are growing at a faster rate than the segment is growing, and that will make us number one automatically.”
He added that with new merchandise lined up, the model is assured of attracting new clients in addition to attracting clients from different manufacturers.
On the affect of COVID-19, Mr. Pawah mentioned within the present 12 months, each quarter had been a distinct story. While in Q1 the trade noticed transition from BS-IV to BS-VI emission norms, the second quarter was a complete washout and a few month-on-month restoration was seen July onwards.
“…With the festive season around the corner, we expect that trend to continue… so we expect the sales to steadily increase over the rest of the quarter and towards the end of the year. However, having said that, I would say the entire 2020 will still be lower than 2019, obviously, because we had a complete quarter missing. But I see a steady improvement from now onwards, into 2021.”
He added that he noticed the 12 months 2020 as a “detriment”, slightly than a setback primarily due to the development worldwide that nations which are popping out of COVID-19, are seeing “really strong growth and I do expect the same to happen in India as well.”