German carmaker BMW continues to outshine rival luxury brands with its best-ever first-quarter performance in calendar year 2026. The company posted 17% year-on-year (YoY) sales growth to 4,567 units in Q1, far surpassing the overall luxury car market's modest 3% rise to around 14,000 units.
BMW's success in a challenging landscape stems from robust demand for its electric vehicles (EVs). The company's EV leadership continued in Q1, with 1,185 BMW and MINI EVS sold, a massive 83% YoY increase. BMW holds the largest market share of over 70% in India's luxury EV segment, with EV penetration reaching 26% of total sales.
Hardeep Singh Brar, President and CEO of BMW Group India, attributed the surge in EV demand to the global oil crisis, especially in March, as it convinced many customers that EVs are the way forward. He expects strong demand for BMW EVs to persist, backed by a wide portfolio, robust launch pipeline and entry into new markets.
On the broader luxury car market, Brar noted that demand has moderated amid macroeconomic and geopolitical headwinds. Compared to this small market, India’s overall passenger vehicle (PV) wholesales rose 16% year-on-year to about 450,000 units in March 2026.
"The market for expensive cars isn't doing well because customers in this segment are far more dependent on global economics, unlike the mass market's salary class and corporate buyers who receive steady monthly income," he said.
"Business class buyers, reliant on global economics, are being conservative right now. They're reserving cash flow to ensure they can run their businesses if anything happens. Stock market-dependent customers are also proceeding cautiously," Brar added.
He warned that if geopolitical tensions persist, the luxury car market could face further moderation and even supply chain disruptions for components.
BMW had achieved its highest-ever annual sales in India last calendar year, selling 18,001 cars (17,271 BMW and 730 MINI units), upn 14% year-on-year. The total market, which has players like Mercedes Benz, Audi and JLR, grew at low single digit to about 52,000 units.
In 2026, BMW Group India will launch 27 new products, including all-new generation models, major facelifts and special limited editions from BMW, MINI and BMW Motorrad. The company will also increase its footprint by opening 19 outlets in 18 cities. Today, the total number of touchpoints across the three brands is 97 in 40 cities.