BMW Senior Vice President Jean-Philippe Parain: The middle class is

BMW India has achieved over 20% growth in the first half of this year. We have been expecting exponential growth in the Indian market over the years, so is this level of growth sufficient or do you think we should expect higher growth in the short term?

In India, we have seen very stable double-digit growth over the last three years. That’s good. Stability is important. Will it accelerate? Yes. If we look at the premium share of the entire market in India, it is relatively low. It’s only 1%. China is 8%. So, I think there is still growth potential. So, it may accelerate, but consumer sentiment may also change and it may also slow down a little bit. So, what matters is long-term growth, and we believe that India definitely has a long-term growth path.

What are the key factors for India and what does the Indian market need to grow exponentially in the coming years?

This is mainly due to consumer sentiment, economic growth, and the middle class wanting to express their success by purchasing luxury goods. I think this trend has been developing in India generation after generation, and I think this trend must continue. But at the moment, the world situation is turbulent. The global economy is not doing as well as it was in the past two or three years. So, there will definitely be fluctuations in the Indian market.

In times of turmoil, we tend to see the absolute premium segment remain unaffected. Currently, the i7, 7 Series and X7 are all doing well, even in India. Do you think the premium segment is growing faster than the emerging luxury segment?

Well, if I look at what we call GKL sales, which is our premium luxury segment, the 7 Series and the i7, it was up 17% globally in the first six months of this year, compared to 2.5% globally overall. So, I think that really shows that. In India, this segment is 18% of our total sales. So, that’s very significant. I think, yes, there’s definitely more potential here.

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Do you think that, with its long wheelbase and extra luxury features, the new 5 Series will be a game changer?

I think if there is any series that is a little bit weaker than our traditional competitors, it is the 5 Series because some of our competitors offer long wheelbase versions and I think it is very important for Indian customers to have more back seat space, more comfort and more luxury. And we are now offering these features in the long wheelbase 5 Series. So it is exactly what the Indian customer wants, great comfort, great luxury, advanced technology in the car, the same driving pleasure, but also very sporty in appearance, with the M sports package. So I think our product is excellent and at a good price, I think it is a great value for money.

You have already launched the i5 in India, which is the electric version of the standard wheelbase 5 Series. Who do you think the customer will be for the traditional internal combustion engine 5 Series and who will be the customer for the electric 5 Series?

I think those who are more progressive will definitely want to try electric cars. They want to experience it. Today, we know from specific customer data that in India, our customers drive about 45 kilometers a day. So, using electric cars is perfect. They only need to charge it once a week. There is also an incentive to buy electric cars in India because the tax rate on electric cars is also lower.

What’s next for BMW in India?

We are watching the sales of the long-wheelbase 5 Series closely. If it is successful again, we may consider other segments.

(Jean-Philippe Parain: Since joining the marketing department of BMW France in 1997, Parain has accumulated rich experience and has held several senior management positions, including President and CEO of BMW Group Belgium, Head of MINI Europe and Senior Vice President of Sales Europe.)