As the global automotive industry navigates a once-in-a-generation transformation driven by electrification, digitisation and shifting consumer expectations, BMW Group finds itself at a critical inflection point. With strong performance across global markets, a renewed focus on technology openness, and ambitious plans under its Neue Klasse philosophy, the German luxury automaker is redefining what premium mobility will look like over the next decade. In an exclusive conversation with NDTV AutoMate, we spoke with Ritu Chandy, Head of Sales, APAC, Eastern Europe, Middle East & Africa, BMW Group, on the company's growth trajectory, its electrification roadmap, digital strategy, retail transformation, and the increasingly strategic role India plays in BMW's global vision.
Siddhartha Sharma: BMW appears to be entering 2025 and 2026 with strong momentum. How would you sum up where the BMW Group stands today?
Ritu Chandy: We closed 2025 on a positive note globally. As a group, we grew by 0.5 percent across our brands, though results differed across regions. This performance was driven by our long-term commitment to sustainability, technology openness and a diversified powertrain strategy. Battery electric vehicles played a major role, particularly in Europe, but we also continue to serve markets that demand internal combustion engines, plug-in hybrids, diesel and petrol options. This balanced approach across segments, from compact cars to luxury vehicles, has been central to BMW's growth.
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Siddhartha Sharma: India has stood out in this broader global picture. What is driving BMW's performance here?
Ritu Chandy: 2026 has started strongly for us in India. In Q1, BMW India recorded 17 per cent year-on-year growth, selling 4,567 units and outperforming the premium segment. The brand sold 1,185 units of EVs in the same period, resulting in 26 per cent penetration. The company continues to command over 70 per cent market share in the luxury EV segment.
This is driven by a strong and performance-focused product portfolio, combined with the dedication of our dealer network. Indian customers connect strongly with BMW's brand values, and that continues to reflect in our results.
Siddhartha Sharma: Sustainability is often seen as regulation-driven. How much of the push is coming from OEMs themselves?
Ritu Chandy: Government policy certainly plays a role, but OEMs must actively shape the ecosystem. At BMW, we strongly believe in technology openness. Battery electric mobility is a core pillar, but it is not the only solution. Plug-in hybrids and, in the future, hydrogen will also play important roles. Increasingly, consumers are recognising the advantages of electrification on their own, particularly lower running and maintenance costs, even without policy incentives.
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Siddhartha Sharma: From your experience, how do consumers respond once they move to electric vehicles?
Ritu Chandy: Once consumers switch and understand that range anxiety and charging infrastructure are manageable, most do not want to go back. In India, the total cost of ownership advantage is significant. When you reach a practical range of around 500 kilometres, the discussion changes completely. With upcoming BMW concepts, we are talking about ranges exceeding 800 kilometres on a single charge, which removes range as a concern for most use cases.
Siddhartha Sharma: BMW has revived the Neue Klasse philosophy. What does this represent for the company today?
Ritu Chandy: Neue Klasse is far more than a badge. Historically, it helped relaunch BMW in the 1960s. Today, it represents our ambition for a new era. We are introducing a completely new design language, a new user interface, a new computing architecture inside the vehicle, and next-generation battery technology. We are moving from prismatic to cylindrical cells, which improves energy density, charging efficiency and overall range. Neue Klasse defines BMW's direction for the next 24 months and well beyond.
Siddhartha Sharma: Will these technologies be limited to electric vehicles alone?
Ritu Chandy: No. What you see with Neue Klasse will extend across powertrains. These design and technology elements will also be available for combustion engines and plug-in hybrids, and potentially hydrogen in the future. This reflects BMW's belief in offering customers choice rather than pushing a single solution across all markets.
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Siddhartha Sharma: Digitisation is becoming a major differentiator in the premium segment. Where does BMW stand on this front?
Ritu Chandy: Digitisation is deeply embedded in BMW's DNA. We have been using artificial intelligence in our factories for close to a decade and rely extensively on this in production planning. BMW also operates the world's largest standalone fleet of connected cars. This allows us to deliver over-the-air software updates and add new vehicle functionalities remotely. Going forward, AI will significantly reshape the customer journey, from how consumers research products to how they interact with the brand.
Siddhartha Sharma: There has been considerable discussion around the India-EU Free Trade Agreement. What does it realistically mean for BMW customers?
Ritu Chandy: The FTA is a positive development, but expectations must be realistic. It does not take effect immediately and still needs ratification, which could take 18 to 24 months. What it enables is greater access to bring certain niche products to India that are currently cost-prohibitive due to trade barriers. CKD operations will continue to play an essential role. Consumers may begin to see tangible benefits towards late 2027 or early 2028, depending on how the process progresses.
Siddhartha Sharma: How resilient is BMW's supply chain amid ongoing geopolitical challenges?
Ritu Chandy: Over the past five years, we have navigated multiple disruptions, from geopolitical conflicts to semiconductor shortages. BMW's global production and supply network allows us to adapt quickly. At present, we have no supply constraints affecting product availability in our region. While certain markets may see short-term sales impact due to fuel prices or sentiment, our supply chain remains robust.
Siddhartha Sharma: BMW is also redefining its retail experience. What is driving this shift?
Ritu Chandy: The new retail concept Retail.NEXT is about reshaping the customer journey by blending physical and digital touchpoints. It moves away from a purely transactional sales model towards engagement. Customers experience a pressure-free environment where sales and service are seamlessly integrated. While the core design language is global, local cultural interpretation is extremely important, particularly in markets like India.
Siddhartha Sharma: How extensively will this be rolled out in India?
Ritu Chandy: By the end of 2026, more than half of our dealer network across 33 cities in India will operate under the new retail concept. Our dealer partners are investing significantly, and we have already seen improved sales effectiveness wherever this model has been implemented.
Siddhartha Sharma: Finally, what role will India play in BMW's global strategy going forward?
Ritu Chandy: India is a strategically important market for BMW. Indian consumers are discerning and demanding, which helps shape our understanding of future mobility needs. India also contributes to technology development through partnerships, including work on digital infrastructure. With strong growth in the premium segment, India will continue to influence BMW's product development, technology strategy and customer experience globally.