Hardeep Singh Brar, Head of BMW India, stated that imposing price caps on road tax benefits for electric vehicles (EVs) could prompt luxury car buyers to relocate to neighboring states and slow the transition to cleaner vehicles in polluted regions.
Hardeep Singh Brar, President and CEO of BMW Group India, noted that Delhi's policy, effective July 1st, limits the complete waiver of road tax and registration fees for electric cars priced up to 30 lakh rupees.
He reported that in the first half of 2026, the share of EVs in BMW's total sales volume in India was 26 percent. Brar expects this share to exceed 30 percent by the second half of 2026 and reach 35-40 percent next year.
During a press roundtable following the launch of the restyled 7 Series in India with a starting price of 1.95 crore rupees, Brar emphasized that government bodies should follow the example of the central government by insisting that road tax exemptions be without any restrictions.
In Brar's view, differing approaches between the Centre and the states can confuse customers and undermine the overall goal of promoting EV adoption. He added that the central government is pushing the idea of reducing oil imports and decreasing pollution, especially in heavily polluted states like Delhi.
Furthermore, Brar warned that Delhi risks losing luxury car buyers to neighboring states like Haryana and Uttar Pradesh, where the tax burden might be lower. He pointed out that affluent customers often have the option to register their vehicles outside of Delhi.
According to Brar, consumers might simply opt not to buy an EV in Delhi and instead purchase a more powerful gasoline or diesel vehicle that produces more emissions. Therefore, in his opinion, a price limit makes no sense in such a situation.
This issue is significant because Delhi-NCR is one of the largest luxury car markets in India, where luxury cars account for 3-5 percent of the total sales in the capital. Brar also mentioned that India has become BMW's fastest-growing market globally this year, moving up from the top 20 global markets last year.
The company aims to enter the top 15, reflecting the growing importance of the Indian market for the luxury automaker. Sales of BMW luxury cars extend beyond India's largest cities; the ten largest markets account for about 70 percent of total sales and 65-70 percent of EV volumes. This contrasts with five years ago when the top 10 accounted for about 80 percent of sales, indicating the growing significance of second and third-tier markets for the company.
The share of BMW EVs is growing amid the declining popularity of gasoline and diesel engines. Although the government is encouraging the shift to cleaner fuels, Brar suggested that diesel cars are likely to face the first sales pressure among internal combustion engine vehicles, but BMW will continue to sell diesel models as long as there is customer demand.
Responding to the question about recent raw material price hikes, Brar stated that BMW India has already increased car prices three times this year, resulting in a cumulative rise of approximately 4-5 percent. The company is considering another increase, possibly next month, due to currency exchange pressures and raw material costs.