BMW's 2026 India play: Catch them early
BMW is ready with 25 new car models, most them targeted at first-time premium buyers
NEW DELHI : BMW AG is preparing its biggest product offensive, featuring 25 new models in 2026, mostly targeting first-time premium buyers, as the German automaker looks to tap into India’s growing ranks of affluent individuals.
The country’s second-largest luxury carmaker will launch 15 car models under the BMW brand and 10 under its premium small car brand MINI in 2026, according to Hardeep Singh Brar, BMW India's chief executive.
These launches will include new nameplates, facelifts, and model upgrades. BMW's motorcycle brand will also introduce two new models, bringing the total number of launches to 27 vehicles.
The offensive comes on the back of a significant boost in sales, driven by a set of consumers looking to upgrade their vehicles and enter the luxury market after driving their existing SUVs (sports utility vehicles) for five to six years, Brar told Mint in an interview.
“They all have bought an SUV in the past in the range of let’s say ₹15-25 lakh price bracket, so mostly we find this set of customers who are coming in, buying an iX1, because they are used to SUVs now and they want to upgrade to an SUV in the luxury segment," Brar said.
The focus on the entry-level customers has helped it record its highest-ever sales of 18,001 units in India in 2025, since entering the market in 2007, marking a 14% year-on-year increase.
A fourfold jump in electric vehicle (EV) sales also aided the growth, with one in five BMWs now sold in the country being electric. It sold a total of 3,753 EVs, which mainly include its top-end sedan, BMW i7, and entry-level luxury SUV, BMW iX1.
Cornering the lower-end
The share of consumers upgrading from near-premium and non-premium segments in the company’s total annual sales rose from 43% in 2024 to 49% in 2025, suggesting that half of the purchases for new BMWs are coming from those looking to enter the luxury market, showed BMW’s data.
“We are actually playing the role of expanding the pie of the luxury market, because somebody has to play the role," Brar said.
“Our objective is to grow further. Rest, I think, will go as per the demand. Our production is very flexible; we can make changes, but yes, we would expect it (entry luxury contribution) to go further, because the response has been great," he added.
According to Brar, the German carmaker's strategic bet on drawing these consumers into the luxury segment is critical for the industry, which is still limited to only about 50,000-52,000 units per year in India. By contrast, overall passenger vehicle retail sales crossed 4.3 million units in 2025.
While entry-level luxury cars typically cost between ₹50 lakh and ₹60 lakh, the top-end models start at ₹1 crore and higher.
The bullish commentary from a luxury carmaker like BMW is coming after a jump in the number of millionaires in the country. According to the Mercedes-Benz Hurun India Wealth Report, the number of millionaires in India nearly doubled from 458,000 in 2021 to 871,700 in 2025.
The increase in volumes is helping the Munich-headquartered automaker narrow the gap with German rival Mercedes-Benz AG, which has led the Indian luxury car market for at least a decade. Mercedes-Benz has not yet released its full sales figures for 2025.
Luxury car market wins
In contrast to BMW, Mercedes bets on the top end of the market.
“If you have a cheaper car, you can sell much more because there is a set [number] of customers in that pyramid who would like to get a cheaper car and that [luxury car] badge," Santosh Iyer, Mercedes-Benz India's managing director, told Mint in an interview earlier.
Nevertheless, BMW is not planning to expand production, said Brar. The company has one plant in Chennai, Tamil Nadu, that can accommodate the production of 50,000 units.
Analysts noted that both rivals' approaches are, in a way, complementary to the luxury car market, given the increasing premiumization trend, even as BMW seeks to gain market share from Mercedes.
“Both approaches are right for today’s demand curve, one expands the base, the other deepens the value pool together lifting consumer choice, dealer confidence, and the category’s long-term health," said Harshvardhan Sharma, group head for auto tech and innovation at Nomura Research Institute Consulting and Solutions India.
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