BMW i7 Rolls Out of Chennai: India Joins Germany in Luxury EV Manufacturing

BMW has begun local production of its flagship i7 electric sedan at the Chennai plant, making India the only country outside Germany to manufacture the model. The locally built i7 eDrive50 xDrive M Sport is priced at ₹1.95 crore, while the performance‑focused i7 M70 xDrive remains an import at ₹2.65 crore, with deliveries starting October 2026.

With this decision of BMW elevates India from a consumption market to a manufacturing hub for high‑end EVs. In global production footprint, this mirrors BMW’s strategy in Hungary (Debrecen plant producing iX3), now extended to its most luxurious EV.

Notably, BMW faces margin pressures due to cooling demand in China and geopolitical tensions, making localized production in India a hedge against volatility.

BMW’s Strategic Leap

BMW's commenced local production of the i7 electric sedan at its Chennai plant, positioning India as the only country outside Germany to manufacture this flagship EV. This milestone underscores BMW’s confidence in India’s luxury EV market and its ambition to integrate the country into its global supply chain.

Model Lineup & Pricing

• i7 eDrive50 xDrive M Sport
  - Locally assembled in Chennai
  - 455 hp, 660 Nm torque
  - 728 km WLTP range
  - Priced at ₹1.95 crore
  
• i7 M70 xDrive
  - Imported from Germany
  - 680 hp, 1,100 Nm torque
  - 686 km WLTP range
  - 0–100 km/h in 3.8 seconds
  - Priced at ₹2.65 crore
  

Deliveries for both models begin in October 2026.

Charging & Technology

• Fast charging: DC charging up to 250 kW (10–80% in 28 minutes)
• Home charging: Complimentary 22 kW BMW Wallbox (≈6 hours full charge)
• Battery: 112.5 kWh pack with advanced thermal management

Why India Matters

• EV manufacturing hub: India’s inclusion in BMW’s global EV roadmap elevates its role beyond consumption to high‑end production
• Luxury EV market: Local assembly reduces import duties, making premium EVs more accessible
• Global footprint: Chennai joins Germany as a production site for BMW’s most advanced electric sedan

Challenges Ahead

• BMW’s move comes amid cooling demand in China and global margin pressures
• By localizing production in India, BMW hedges against volatility while competing with rivals like Mercedes EQS and Audi e‑tron GT. 

Other Luxury Cars Brands in India 

Besides BMW, several other global luxury carmakers have established local production in India, including Mercedes‑Benz, Audi, Jaguar Land Rover, and Porsche (via VW Group). These brands assemble or manufacture select models at facilities in Pune, Chennai, and other hubs to reduce import duties and expand their footprint in India’s fast‑growing premium market.

Mercedes‑BenzOperates a major plant in Chakan, Pune, and produces models like the E‑Class long wheelbase, GLC, GLE, and Maybach variants. India is one of Mercedes’ largest CKD (Completely Knocked Down) assembly markets.

Audi, as part of Škoda Auto Volkswagen India, assembles select models in Aurangabad, Maharashtra. It focus on assembling SUVs like Q3, Q5, Q7, and performance sedans.

Jaguar Land Rover (JLR) operates a plant in Pune. It produces models such as the Discovery Sport and Range Rover Evoque for the Indian market.

Porsche (via VW Group) imports most of the Porsche cars' models, though VW Group’s India operations in Aurangabad, Maharashtra, do support assembly of its select premium models.

Škoda & Volkswagen operate plants in Aurangabad and Pune, producing premium sedans and SUVs.Brands under the group include Škoda, Volkswagen, Audi, Bentley, Lamborghini, Porsche.

Editorial Takeaway

BMW’s Chennai production of the i7 is more than a manufacturing milestone — it’s a statement of intent. India is no longer just a market for luxury EVs; it is now a strategic production hub shaping the future of premium electric mobility.

Local assembly reduces import duties, making premium EVs more accessible to Indian buyers.

BMW’s move to produce the i7 in Chennai is both symbolic and strategic: it cements India’s place in the global EV map, offers Indian buyers cutting‑edge luxury mobility at competitive pricing, and strengthens BMW’s resilience against global market uncertainties.

India’s luxury EV market is heating up with rivals like Mercedes EQS and Audi e‑tron GT, positioning the i7 as a direct competitor

Modi Rallies CEOs for India’s Chip Future

Prime Minister Narendra Modi chaired a high‑level Semiconductor Roundtable with global CEOs at Seva Teerth, underscoring India’s ambition to become a frontrunner in emerging technologies.

The meeting, held on 16 September 2026, brought together leaders from companies including SEMI, Micron, Infineon, Applied Materials, ASML, Merck, Tokyo Electron Ltd, FujiFilm, AMD, Intel, Tata Electronics, Lam Research, Rapidus, NXP, Foxconn, Semi Conductor Devices, Advantest, Celesta Capital, CG Power, IBM Reserach among others.

Prime Minister Modi urged industry leaders to contribute ideas on policy and administration, assuring their feedback would shape future reforms. He called on them to play an active role in driving the next phase of India’s semiconductor expansion

Key Highlights from the Roundtable

• Government–Industry Collaboration: The Prime Minister emphasized the need for close cooperation between policymakers and industry leaders to shape India’s technology future. He highlighted India’s strong foundation in talent, infrastructure, and technology adoption.
• Emerging Technologies: Modi urged India to aspire to be among the early leaders in areas like Artificial Intelligence and Quantum Computing. He referenced the ambitious target of training one crore people in AI, noting that India’s talent pool combined with global expertise could unlock vast opportunities.
• Policy Environment: Reiterating the government’s commitment to a predictable and responsive policy framework, the Prime Minister invited CEOs to share suggestions on administrative and policy measures. He assured that industry inputs would be given due consideration.
• Industry Confidence: CEOs praised the government’s sustained efforts under ISM 2.0, expressing confidence in India’s ability to build capabilities across the semiconductor value chain — from manufacturing and R&D to advanced technologies and supporting industries.

Industry Response

The CEOs acknowledged the progress India has made in manufacturing, design, infrastructure, and talent development, and committed to contributing to India’s emergence as a globally competitive semiconductor hub. They noted that recent achievements have created a strong foundation for deeper industry participation.

Strategic Significance

This roundtable marks a shift from foundational efforts to scaling opportunities, positioning India as a serious contender in the global semiconductor race. With strong government backing, industry confidence, and a vast talent pool, India is setting the stage to become a hub for next‑generation technologies.

India’s HALE UAV Program Strengthened by Bharat Forge–Pratt & Whitney Canada Engine Collaboration

Both companies will evaluate engine integration on India’s next-generation high-altitude, long-endurance unmanned aircraft. 

Bharat Forge Ltd. and Pratt & Whitney Canada today announced that they will work together to evaluate the integration of advanced turboprop engines into a high-altitude, long-endurance (HALE) unmanned aerial vehicle (UAV) program designed and developed by India’s Defence Research and Development Organisation (DRDO). Pratt & Whitney is an RTX business.

The collaboration supports India’s indigenous unmanned aerial systems efforts under the government’s Aatmanirbhar Bharat initiative. Pratt & Whitney Canada will evaluate engine compatibility, performance and installation requirements. Bharat Forge will lead engine-airframe integration, including installation design and systems interfaces, drawing on its advanced engineering, manufacturing and aerospace systems capabilities.

"BHarāt Forge Aerospace business is proud to collaborate with Pratt & Whitney Canada to advance India’s indigenous aerospace and defense manufacturing capabilities,” said Amit Kalyani, Vice Chairman and Joint Managing Director, Bharat Forge Ltd. “By combining Pratt & Whitney’s globally proven propulsion technologies with Bharat Forge’s engineering and systems integration expertise, we aim to support development of a world-class HALE platform that strengthens India’s strategic self-reliance and defense preparedness.”

“This collaboration with Bharat Forge reflects our continued commitment to supporting India’s aerospace and defense ambitions,” said Ashish Saraf, Vice President and Country Head, Pratt & Whitney. “Pratt & Whitney Canada’s turboprop engines have a proven legacy of reliability in demanding operational environments, which is exactly what’s needed for India’s HALE program.”

HALE UAVs provide long-endurance surveillance, intelligence and reconnaissance across land and maritime domains.

FAQs On NPCI's Introduction of Nominal MDR on High‑Value UPI Transactions, Safeguarding Small Merchants

FREQUENTLY ASKED QUESTIONS (FAQs)

Section 1: Policy Objectives

Q1. Why is this Merchant Discount Rate (MDR) being introduced now?

Answer: UPI processes billions of transactions every month. The MDR is distributed only amongst the UPI ecosystem, to further invest into infrastructure resiliency, innovation, cybersecurity and customer service. Charges are applicable only for transactions above ₹2,000.

Q2. Will small-value UPI transactions be impacted?

Answer: No impact on transactions up to ₹2,000, which comprise more than 95% of UPI (P2M) volume.

Q3. What MDR is being introduced for merchants on UPI transactions?

Answer: MDR of 0.4% on P2M transactions above ₹2,000. For transactions of ₹75,000 and above, capped at ₹300.

Q4. How does UPI MDR compare to traditional Debit and Credit Card MDRs?

Answer: UPI MDR is lower. Credit card MDRs: 1.5%–2.5%. Debit card MDRs: up to 0.90%. UPI MDR baseline: 0.4%, capped at ₹300.

Q5. When do the updated MDR provisions take effect?

Answer: Effective from 15th October 2026.

Q6. How does this compare with international payment systems?

Answer: Global systems support infrastructure and innovation. India prioritises accessibility, scale, inclusion.

Q7. Who decides the ultimate implementation and enforcement of MDR caps?

Answer: NPCI’s UPI and Services Steering Committee.

Q8. What is the dedicated fund for small merchant that is being proposed out of MDR?

Answer: Fund for Tier 3–6 centres, NE states, J&K, Ladakh, and notified schemes like PM SVANidhi.

Q9. How does the proposed dedicated fund help small merchants?

Answer: Supports expansion of UPI acceptance, incentives for rural and small merchants.

Q10. Why is reliance on government subsidies alone no longer sufficient for UPI?

Answer: Annual cost ~₹20,000 crore. Subsidies create uncertainty. Threshold-based model ensures sustainability.

Q11. How will this move drive market competition among payment app operators?

Answer: Sustainable framework encourages startups, levels playing field, improves services.

Q12. How does this policy ensure cybersecurity resilience against emerging threats?

Answer: MDR revenue funds cybersecurity, AI fraud detection, encryption upgrades.

Q13. How far has UPI expanded internationally as of 2026?

Answer: Live in 11 foreign countries.

Q14. What is the current UPI's transaction volume and value scale?

Answer: August 2026: 2,451 crore transactions worth ₹29.9 lakh crore.

Section 2: General Consumer

Q15. Will ordinary consumers be charged?

Answer: No, UPI remains free for consumers.

Q16. Is there any charge for P2P transactions?

Answer: No, P2P transactions remain free.

Q17. Will UPI Apps start charging platform fee?

Answer: No, platform fees prohibited.

Q18. Will consumer prices rise?

Answer: No, merchants absorb nominal costs.

Q19. Will I need to pay a fee when scanning QR codes?

Answer: No, QR payments remain free.

Q20. Are there monthly caps on free UPI transactions?

Answer: No, unlimited free transactions.

Q21. Where can users verify official updates?

Answer: Ministry of Finance, RBI, NPCI official releases.

Q22. Does MDR affect auto-debit recurring payments?

Answer: No, AutoPay mandates exempt.

Section 3: Micro Merchants (P2PM)

Q23. Will small local vendors be charged MDR?

Answer: No, P2PM merchants enjoy zero MDR.

Q24. What is the P2PM framework?

Answer: Specialized account category, zero MDR up to ₹1 lakh/month.

Q25. Do small merchants need to upgrade QR codes?

 Answer: No, existing QR codes continue.

Q26. What if a small merchant receives payment above ₹2,000?

Answer: MDR depends on account category. P2PM exempt.

Q27. When will dedicated fund framework be finalized?

Answer: Within three months, with RBI consultation.

Q28. Is GST registration required?

Answer: No, eligibility based on thresholds.

Q29. How will banks identify small merchants?

Answer: Transaction velocity checks, transition after 3 months above ₹1 lakh.

Q30. Does zero MDR apply in rural areas?

Answer: Yes, rural QR payments exempt.

Section 4: Large Merchants & E-Commerce

Q31. What MDR is applicable?

Answer: 0.4% above ₹2,000, capped at ₹300.

Q32. Is there a maximum fee cap?

Answer: Yes, ₹300 cap for ≥₹75,000.

Q33. Which categories qualify for flat MDR?

Answer: Railways, telecom, insurance, fuel: flat ₹5 above ₹2,000.

Q34. Can merchants pass MDR to buyers?

Answer: No, prohibited.

Q35. How is MDR calculated?

Answer: Example: ₹3,000 → ₹12; ₹50,000 → ₹200; ₹1,00,000 → capped ₹300.

Amount paid	Applicable MDR	MDR paid
₹2,000	-	₹0
₹3,000	0.40%	₹12
₹50,000	0.40%	₹200
₹75,000+	Fixed ₹300	₹300

Q36. Does MDR apply to Credit Cards linked on UPI?

Answer: No, separate credit product rules.

Section 5: Capital Market Transactions

Q37. What MDR applies?

Answer: 0.02% capped at ₹300.

Q38. Which entities covered?

Answer: AMCs, SEBI brokers, securities dealers, investment platforms.

Section 6: Specialized Sectors

Q39. Insurance premium payments?

Answer: Flat ₹5 above ₹2,000.

Q40. Fuel purchases?

Answer: Flat ₹5 above ₹2,000. Below ₹2,000 free.

Q41. Government utility bills?

Answer: Flat ₹5 above ₹2,000. Below

Vikram Solar Seals 1 GW Pact with Avaada Electro to Bolster India’s DCR Supply Chain

Kolkata: Vikram Solar, a pioneer in Indian solar module manufacturing, has entered into a domestic cell supply agreement with Avaada Electro, reinforcing its foothold in India’s fast-expanding Domestic Content Requirement (DCR) segment and strengthening long-term supply-chain resilience.

Under the agreement, Avaada Electro will supply 1 GW of ALMM-compliant domestically manufactured half-cut N-Type G12R TOPCon solar cells for Vikram Solar’s module manufacturing operations. Deliveries are scheduled to commence in September 2026, ensuring consistency in supply and operational continuity to meet the country's growing DCR requirements.

This agreement marks a further step in Vikram Solar's penetration of the domestic DCR market and its strategy to diversify and strengthen its cell supply chain, adding to the supply agreements the company has entered into earlier this year. It also complements Vikram Solar's backward integration strategy, anchored by its upcoming 9 GW high-efficiency solar cell manufacturing facility, scheduled to commission in Q4 FY27.

Mr. Gyanesh Chaudhary, Chairman & Managing Director, Vikram Solar, said:

"The next phase of India's solar growth will be won or lost on supply chain depth, not just manufacturing scale. This arrangement is another step in that direction- one that widens our supplier base, strengthens our hand on DCR, and gives us the confidence to commit to India's energy security with fewer variables outside our control. Atmanirbhar Bharat won't be built by any single partnership; it'll be built by companies that keep making these choices, year after year.”

About Vikram Solar Limited:

Vikram Solar Limited is one of the leading Indian solar module manufacturers, specializing in efficient photovoltaic (PV) module manufacturing, with an international presence across 39 countries. Headquartered in Kolkata, West Bengal, it is one of the largest PV module manufacturers in India. Vikram Solar is a 9th time ‘Top Performer’ in PVEL’s PV Module Reliability scorecard and has been included in the Tier 1 solar PV modules manufacturer list of Bloomberg NEF for 9 consecutive quarters. Vikram Solar Limited has established a pan-India presence through an extensive distributor network of 119 authorized distributors and more than 750+ dealers.

For further information, please contact: Srabani Sen | Vikram Solar | Mobile: +91 7349661300 | Email: press@vikramsolar.com