BMW Confidence in Hybrids Weakens as EV Range Improves

German luxury carmaker BMW India sees limited scope for hybrid vehicles in its portfolio as electric vehicles (EVs) gain faster acceptance in the luxury segment. The company believes improvements in EV range and performance have weakened the case for hybrid powertrains.

According to Hardeep Singh Brar, President and CEO, BMW India, the improvement in electric vehicle driving range has reduced the need to combine a petrol engine with an electric motor. He said that with EVs offering a range of around 728 km, adding a petrol engine and hybrid system to a plug-in hybrid does not offer enough advantage.

Brar said hybrid powertrains also increase the overall weight of a vehicle and affect cabin space as they combine both a battery and an engine. He added that the power and acceleration offered by plug-in hybrids may not provide the driving experience expected by customers in the luxury segment. As a result, BMW India currently does not see a strong case for adding hybrids to its portfolio.

BMW India focus on electric mobility is also reflected in its sales performance. Between January and June 2026, the company sold 2,359 electric vehicles, registering a 78% year-on-year growth. EVs accounted for 26% of BMW Group India’s total sales during the period, up from 21% a year earlier.

Electric vehicle adoption is increasing faster in the luxury car segment. BMW India said it holds a 69% share of India’s luxury EV segment. In comparison, EV penetration in the mass-market passenger vehicle segment is around 7%, where automakers are pursuing a mix of powertrain technologies, including EVs, hybrids, CNG and biofuels.

BMW India continues to offer diesel vehicles across its portfolio, although demand for diesel models has declined. Brar said the company evaluates powertrain demand based on customer preferences across different vehicle segments. During the first half of 2026, the share of EVs in BMW’s sales increased by 5 percentage points, while diesel declined by 3 percentage points and petrol by 2 percentage points.

 On vehicle taxation, Brar called for greater alignment between central and state governments. He said differences between the central GST structure and state-level taxes can create distortions in the market. Citing Delhi as an example, he said vehicle tax is 10% in Delhi, compared with 5% in Haryana and zero in Uttar Pradesh, which can encourage customers to register vehicles outside Delhi.

BMW India is also increasing its focus on local manufacturing and sourcing. According to Brar, 95% of BMW’s 13 models in India are locally manufactured or localised, while 5% are sold as Completely Built Units (CBUs). The company plans to further increase localisation as it expands its portfolio in India.