The Indian automotive industry is gaining momentum, thanks to the country’s manufacturing push. According to IBEF, the Indian passenger car market is expected to reach a value of $ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27. Additionally, India has huge ambitions to cater to the global EV market, which is projected to grow to $ 1,318 billion by 2027. The major car manufacturers in the country are gearing up to face this demand. CEO Insights recently engaged in an exclusive interview with Vikram Pawah, President of BMW Group India, who talks about leading the country’s automotive industry to the future. Vikram is a futuristic leader with more than three decades of experience in the automotive industry. He boasts substantial experience in SBU management, corporate strategy and business expansion. He is a specialist in Profit Centre management, Strategic management, Customer Care Strategies, Network Design, Systems Design, Lean Management and process optimization. Below is an excerpt from the interview.
In conversation with Vikram Pawah, President, BMW Group India
While India’s automotive industry is on track to secure the third position globally by 2030, how do you perceive the efforts of today’s visionary leaders propelling the sector towards resilience and success?
The Indian auto industry serves as a strong pillar of the manufacturing economy and Make in India. With a deep understanding of what Indian customers require, industry players continuously open new segments and drive innovation. The robust ecosystem of Indian auto manufacturers, component makers, supply chain networks and service providers work together as an engine for growth. The structural integrity of the Indian auto sector is strong. Covid was a test of the industry's adaptability and resilience, and we saw how swiftly the industry bounced back.
By making strategic investments, accelerating digitalization, constant R&D innovation and developing human capital, the auto industry is positioning itself for success in the era of sustainable mobility and manufacturing. With the Indian economy strengthening further and disposable incomes rising across urban and rural India, the sector’s contribution will rise to the next level.
India's ambition for global leadership in the electric vehicle segment symbolizes a shift from being a consumer of foreign technology to becoming a global innovator. How are industry leaders turning this vision into a reality today?
India's ambition of assuming a dominant position in global automotive and e-mobility space gathers steam with a number of factors. Auto companies are investing significantly in comprehensive electric vehicle (EV) strategies, charging infrastructure, research and development. They are leveraging the country's engineering talent and manufacturing capabilities. Additionally, they are collaborating with domestic and international partners to access cutting-edge technology, enhance product offerings, and expand market reach.
We believe there are three key action areas that will dominate the mobility of tomorrow: electric, digital, and circular. Each of these on its own is already a challenging and inherently complex task.
The demand for premium EVs is set to grow in India. Although, in terms of volumes, the market is still at a nascent stage, we see a fast rate of EV adoption, especially in the luxury segment. In the long term, key deciding factors will be a continuation of taxation incentives and the availability of a well-spread charging infrastructure. For BMW Group India, EV sales have grown at a tremendous rate year on year. In 2023, BMW Group EVs continued leadership in the luxury segment for the second year in a row by clocking +325 percent growth (1,474 units).
To what extent are their efforts attracting investors and market leaders to contribute towards the sector, in your observation?
Investors recognize the immense growth potential of India's automotive industry, which is driven by factors such as rising disposable incomes, urbanization, and government initiatives to promote electric mobility and sustainable transportation solutions. Industry’s strategic vision, strong track record, and commitment to innovation and sustainability are instilling confidence among investors, who see the sector as a lucrative opportunity. The number of increasing partnerships and collaborations are efforts to harness economies of scale and create solutions that are a win-win for the business and for the consumers.
How should leaders strategically utilize these partnerships / collaborations to facilitate great strides in innovation and smart initiatives, on the same?
Industry leaders should strategically utilize partnerships and collaborations by leveraging complementary strengths. Beyond in-house development, partnering with other innovative companies, research institutions, and startups can widen access to ground-breaking technologies, accelerate product development, and enhance competitiveness. Collaboration with government agencies and policymakers is also essential to shaping positive regulatory frameworks. When all catalysts work together, new opportunities can be unlocked, creating value for all stakeholders.
Could you give a glimpse of BMW Group India’s mark of being at the forefront of innovation and technology? What are your visions for the group going forward?
At BMW, we move body, heart and mind. The world around us is changing – and at the BMW Group, we see it as our responsibility to help shape that change. Our aim is to make individual mobility more human, more intelligent and more responsible – to create an inspiring future for us all.
We believe there are three key action areas that will dominate the mobility of tomorrow: electric, digital, and circular. Each of these on its own is already a challenging and inherently complex task. Combining all three aspects into a coherent overall concept is the ultimate challenge. This capability will determine future competitiveness in our industry. With the Neue Klasse (New Class) due to be launched in 2025, we will open up new dimensions in several areas – design, operating concepts, efficiency and sustainability.
Hobby: A book, some music or hitting the road!
Favorite Cuisines: I am a complete foodie. I love eating all types of cuisines or even multiple cuisines at the same time!
Favorite Movie: Chariots of Fire by Hugh Hudson. It is an absolute celebration of the human spirit in adversity and a relatable example of a winning spirit.
Favorite Book: Catch-22 by Joesph Heller. It is a classic that got me into a habit of reading and a delightful way to learn about paradox.
Favorite Travel Destination: Barcelona and coastal towns in Basque Country for their culture, art, food, and vibes.