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New Delhi: German luxury carmaker BMW Group, which emerged as one of the top sellers in EVs after Tesla and BYD, is of the opinion that while the plug-in hybrids could be a stepping stone towards the transition to electrification, for India electric vehicles (EVs) should be the focus area with regards to providing incentives.
“Plug-in hybrids (PHEV) can be used for transition in some cases where customers have to travel for longer distances, and want to be released from possible range anxiety. We are proposing this technology in many countries,” Jean-Philippe Parain, Senior Vice-President, Region Asia-Pacific, Eastern Europe, Middle East and Africa, BMW Group, said during a press conference on Thursday.
“If I speak for India, I would say that the full focus should be on transition to BEVs (battery electric vehicles),” he said.
A PHEV comes with a larger battery pack, than a typical hybrid electric vehicle (HEV). PHEVs use a battery to power an electric motor and a gasoline or diesel fuel to power an internal combustion engine (ICE). They run on electric power till the battery is nearly depleted, and then the vehicle automatically switches over to use the ICE.
Currently, India levies a 5% goods and service tax (GST) on battery electric vehicles (BEVs). For ICE vehicles, the tax rate (including compensation cess) is 28% for small vehicles and 45% for large ones. It is the same for HEVs and PHEVs.
“The strongest incentives from the state should be for EV adoption. I think you can achieve more if you focus on one technology,” Parain said.
On Wednesday, BMW Group India launched the new 5 Series Long Wheelbase in the country with price starting at INR 72.90 lakh. It also introduced the new Mini Cooper S and the electric Mini Countryman priced at INR 44.90 lakh and INR 54.90 lakh respectively (all prices, ex-showroom).
BMW Motorrad, the two wheeler division of the luxury car company, launched the premium electric scooter CE 04 at INR 14.90 lakh (ex-showroom).
In the January to June 2024 period, BMW reported its highest-ever half-yearly sales of 7,098 cars and 3,614 two-wheelers in India. The carmaker also claims to be the first luxury car manufacturer to cross a milestone of delivering over 2,000 EV in the country till date.
Parain also seemed enthusiastic on India as a sourcing hub for the company. However, he did not share specific details. “We are trying to expose India to our colleagues at the headquarters for parts purchasing.”
