BMW India sees little scope for hybrid vehicles in its portfolio as electric vehilcles gain faster acceptance in the luxury segment, although the broader passenger vehicle market is pursuing a mix of powertrain technologies.
According to BMW India President and CEO Hardeep Singh Brar, the improvement in driving range of electric vehicles had weakened the case for combining an electric motor with a petrol engine.
“Because when EVs give you a range of 728 km, you put petrol engine and hybrid system also, the power, the acceleration figures for a plug-in hybrid are very, very pathetic. You won't like driving a plug-in hybrid,” Brar said.
He said hybrids also add weight and take away cabin space because they combine a battery and an engine.
“And you also increase the weight of the car [hybrid powertrain]. It also takes away your space. Having [both] a battery and engine, you are somewhere compromising on the space,” he said.
“So, it doesn't make sense,” Brar said, when asked why BMW does not have hybrids in its portfolio.
BMW India’s aggressive push in electric mobility has emerged as the biggest driver behind its rise to the top of India’s luxury car market, with electric vehicles accounting for more than a quarter of its sales in the first half of 2026.
The automaker sold 2,359 electric vehicles between January and June, registering a 78% year-on-year growth. EVs contributed 26% of BMW Group India’s total sales, up from 21% a year ago, reinforcing its position as the country's largest luxury EV brand with a 69% market share in the segment.
The luxury vehicle segment is seeing faster adoption of electric cars. This contrasts with the mass passenger vehicle market, where automakers are pursuing a multi-fuel strategy involving EVs, hybrids, CNG and biofuels. EV penetration in the mass-market passenger vehicle segment is around 7%.
Brar said BMW continues to offer diesel vehicles across its portfolio despite a decline in demand, with the company assessing powertrain demand by segment.
“For example, in this category [7 Series'], we didn't see diesel demand at all,” he said.
BMW India reported a 5 percentage-point increase in the share of electric vehicles in its sales in the first half, while diesel declined by 3 percentage points and petrol by 2 percentage points, Brar said.
On government policy, Brar said central and state governments need to follow a more aligned approach on vehicle taxation. He said state-level taxes create disruption while the central government has a common GST structure for cars.
“State governments have to align with what the central government is doing,” Brar said. “State governments are not really aligned with the central government. They are moving in their own direction.”
He cited Delhi as an example, saying the capital has a 10% tax compared with 5% in Haryana and zero in Uttar Pradesh, prompting customers to register vehicles outside Delhi.
“Delhi is one of the most polluted states in the world. And secondly, you didn't make high revenue because customers are moving out,” he said.If you want, I can also make this tighter and more Reuters-like at exactly 450 words, while retaining all the requested points and exact quotes.
BMW is also increasing local manufacturing and sourcing. Brar said 95% of BMW's 13 models in India are localised, with completely built units accounting for 5%. He said the company is looking to further increase localisation as it expands its portfolio.