BMW Flags China Threat to India Auto via EU Trade Pact
Overview
BMW Group India has cautioned the government against potential misuse of the proposed India-EU trade pact, warning that Chinese carmakers could exploit it to enter the Indian market. The luxury auto giant suggests implementing safeguards, such as a minimum price threshold for vehicles under the deal, to protect domestic investments and the existing market.
Regulatory Concerns
BMW Group India has alerted the government to a potential loophole in the proposed India-European Union Free Trade Agreement (FTA). The luxury car manufacturer fears that Chinese automakers might leverage this pact to gain easier access to the Indian automotive market. BMW India president and CEO Hardeep Singh Brar stressed the need for the government to ensure robust checks to prevent such misuse.
Proposed Safeguards
To mitigate risks, BMW suggests implementing protective measures within the trade deal. One key proposal is to set a minimum price threshold for vehicles that would benefit from the pact. Brar indicated that cars priced above €20,000-€30,000 (approximately ₹21 lakh and above) could qualify. This approach, the company argues, would help protect domestic investments and the broader market, particularly the crucial small car segment, from potential disruption by lower-cost imports.
Indian Carmakers' Stance
Indian automotive manufacturers echo these concerns, petitioning the government for stringent conditions under the trade pact. They specifically advocate for high price thresholds, limited import quotas, and substantial value addition requirements to be included in the agreement with the European Union.
BMW's EV Strategy
Despite these regulatory concerns, BMW is aggressively pursuing its electric vehicle (EV) strategy in India. Brar confirmed plans to introduce 10 new products this year, including six new models and four upgrades, with three of these being entirely new EV offerings. The company aims to bring EVs to a price point close to that of internal combustion engine models, focusing on long-wheelbase variants.
Infrastructure Gaps
Addressing the critical challenges for EV adoption, Brar identified charging infrastructure as the most significant gap. He advocated for a Public-Private Partnership (PPP) model to effectively install and maintain charging stations across the country.
