BMW Flags Risk of EV GST Hike Amid Strong Electric Vehicle Demand

German luxury carmaker BMW on Thursday urged the government to retain the current 5 per cent GST on EVs, warning that any hike could slow down electric vehicle adoption in India. The company said policy stability is critical at a time when the EV market is still at an early stage of growth.

Speaking from an industry perspective, Hardeep Singh Brar, President and CEO of BMW Group India, said the government’s economic management has been strong.  "I don't think we have more expectations from them (the government). The only request, I think, would be not to touch the GST slab of EVs because it keeps coming back that the GST on these vehicles will be increased. (If it happens) I think it will be very detrimental."

BMW reported that its electric car sales surged over 200 per cent in 2025, while combined sales of BMW and MINI rose 14.4 per cent year-on-year to 18,001 units. The group also plans to launch 10 models this year, including six all-new vehicles and four major updates, signaling continued investment in the Indian market.

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Brar noted that EV penetration in India stands at just 4 per cent, compared to over 10 per cent in developed markets and nearly 40 per cent in China. He said increasing GST before reaching an adoption inflection point would hurt demand.

He also highlighted that EV manufacturing costs remain 40–50 per cent higher than ICE vehicles due to battery prices, reinforcing the need to keep GST unchanged.

Calling 2025 an “absolutely phenomenal” year, Brar said BMW Group India has grown 13–14 per cent annually since the Covid-19 pandemic, outpacing the broader auto industry.