BMW seeks clarity on GST for hybrid cars

Luxury car maker BMW is waiting for more clarity from the government over taxation issues before it could decide on bringing hybrid cars into the Indian market.

Vikram Pawah, group president, BMW India, said on the sidelines of the launch of seventh generation of BMW 5 Series in Mumbai on Thursday that he had expected hybrid cars to get the tax benefit like electric vehicles under GST, but they have not.

The hybrid cars, specially the plug-in ones, would have been a great way for the customers to transit later to the electric vehicles, he added.

As per Pawah, the company has performed well in India so far despite all the challenges. During the period from January to May this year, as many as 3,533 units were sold, clocking a growth of 8% as compared to the corresponding period last year.

The company has so far sold around 66,000 units in around a decade it has been present in India, of which around 30% were 5 Series cars.

With the plan to regain their number one position in the luxury car market, BMW management has come out with new strategies. In order to meet their target, the company has even planned to invest about Rs 120 crore in India this year and increase more outlets in the country.

BMW had lost its pole position in the luxury market segment first to Audi in 2013, and then to Mercedes in 2015, which currently leads the segment.

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Priced between Rs 49.9 lakh and Rs 61.3 lakh, the new 5 Series is offered in three engine configurations
From January to May this year, the company has sold 3,533 vehicles, clocking a growth of 8% over the year-ago period