In an upfront conversation Vikram Pawah, President and CEO at BMW India spoke to Ashish Bhatia where he hailed the supplier support for higher localised content per vehicle-led growth.
Q. How do you gauge the industry sentiment against the backdrop of volumes reaching pre-pandemic peaks?
A. The real sentiment that has been coming to the surface is quite strong. After the two pandemic-marred fiscal, to be heading in the pre-pandemic direction hints at a very steady and reverse recovery in demand. Especially, our segment or our sales have seen a quicker recovery. It is really good to see that we haven’t seen that kind of demand for a long time. The growth has been solid in our segment where we’ve grown by ~51 per cent in the first eight months of the year for our two brands BMW and Mini. In others, we have grown by ~48 per cent. These record numbers that we’ve seen is an outcome of our operations over the last 15 years. It augured well for the festive season too. This is of course due to a lot of exciting products which have generated excitement. It reflects on our domestic sales that appear robust. If I look at it geographically as well there is a good distinction between tier1s, tier2s, and the tier3s. So it’s not that only the main metros are growing, it is that all the markets are growing at a really fast pace.
Q. How do you look at the progress made on e-mobility and how have your suppliers supported you in this journey?
A. BMW has led in the EV space. In 2013, we launched the BMWi and even in 2022, we have again proven that we are the leaders in e-mobility because we are the only manufacturer in the country to offer three different distinct models. I don’t think any other manufacturer is offering that kind of variety. So be it the mini hatch or the i4 sedan or the iX Sports Utility Vehicle (SUV), you know the customer can choose either one of those variants to attach to e-mobility. We are experiencing good demand for our launches for the whole year. By 2023, the Group will have 12 pure EVs on sale worldwide. We are trying to raise some initial production levels so we’ll be aggressive. We are also celebrating fifteen years of product development including our manufacturing operations in Chennai. So we recently delivered one lakh units for our customers who are a very important part of this success story. From day one we started increasing our production. I am really happy to share that 98 per cent of the sales that we do today are actually locally produced in India. That clearly shows it’s a fruitful collaboration with our supplier partners who are very important stakeholders across axles, seats and other parts.
“By 2023, the Group will have 12 pure EVs on sale worldwide. We are trying to raise some initial production levels so we’ll be aggressive.”
Q. Does the emobility portfolio live up to the performance motto of the brand? How has the powertrain evolved?
A. For us at BMW, I think when we’re looking at the EV space, we want to make sure that the BMW is a fun-to-drive option for our customers. That’s the core of our brand and driving dynamics is very critical for us. We want to ensure when we’re launching an EV, the friendly dynamics remain intact. So what comes along with that is the power, the torque that you get for the EVs and also the range that comes with it. We’ve taken into account the feedback from our customers on these. In India, typically the range requirement is shorter. Through i4, we are offering the longest range in the country.
Q. What are the government interventions desired by you and how do you plan to cope with a dynamic business environment?
A. Anything that government can do to boost the segment is welcome. Their intent is clear to have 30 per cent conversions by 2030. Their vision on making the country a five trillion economy is clear. From our end, of course, it’s a constant endeavour to look at how we can gain efficiencies at our plants, for example. So the idea is to create more capacity for the investment first because we’re able to set some of the pricing over the years, working on improved efficiency. For example, we have a capacity on a single shift basis with two lines of power units so we’ve been enhancing that over the years and we expect to be able to cater to the demand. We are watching the geopolitical developments and logistics very closely to align with these new developments. We have been able to offset price increases to an extent. As BMW, we started in the EV space in 2013 so it’s been about nine years now. That’s the process for us so maybe we’re a little bit more experienced in our generation. We want to be at the forefront of new technologies! We have 24 launches and five bikes lined this year. Looking forward to an exciting year ahead.
“We want to be at the forefront of new technologies! We have 24 launches and five bikes lined this year. Looking forward to an exciting year.”
Q. What are the growth and challenge areas for BMW and the industry as a whole?
A. The growth areas are there for all to tap. Stability of the policy is perhaps one challenge where we want a clear road map on the next 10-15 years.
“Stability of the policy is perhaps one challenge where we want a clear road map on the next 10-15 years.”
Q. A word on ensuring occupant and pedestrian safety against the backdrop of an avoidable road mishap that has forced a rethink?
A. Safety is a top priority. We ensure all the boxes are ticked. From seat belts to air bags to reinforcing the vehicle structure. Pedestrian safety is part of the overall designing. We always follow the rule of the land and try to stay ahead of the curve. ACI
