Why BMW is not keen to invest in India under new EV policy

economictimes.indiatimes.com:

BMW has expressed reservations about investing under India's new electric vehicle (EV) manufacturing policy, citing concerns over the lack of recognition for companies with a long-standing presence in the country. According to Vikram Pawah, President of BMW India, while the policy supports the EV market, it overlooks the contributions of established players like BMW who have been operating and investing in India for years.

Pawah explained that the current policy does not create a level-playing field, as it treats new entrants and existing companies alike without considering the latter's prior investments in the country. “The threshold for investment should have been different for a new player versus someone who has already been here. We want our previous investments to be recognized… We need a level-playing field,” Pawah told The Times of India.

BMW is among a growing number of companies that are reluctant to engage with the policy, which was introduced in mid-March 2024 to entice foreign carmakers, notably Tesla, to invest in India's burgeoning EV market. However, Tesla remains hesitant, and many other multinational firms, including BMW, have not been enthusiastic about the policy’s current framework.

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India’s new EV policy, introduced in March this year, aims to attract investments by offering lower import taxes on certain electric vehicles, provided carmakers commit to investing at least $500 million and begin