BMW has commenced mass production of the 2027 i7 50 xDrive at its Chennai plant in India, a move that marks a significant milestone for the German automaker's global manufacturing strategy. The facility is now assembling the all-electric flagship sedan on the same production line as its combustion-engine counterpart, the 740 M Sport.
Orders for the locally-built i7 are now open, with deliveries scheduled to begin in October. Previously, the i7 was exclusively manufactured at BMW's Dingolfing plant in Germany. With this expansion, India becomes the second country worldwide capable of producing the luxury electric sedan, underscoring BMW's commitment to localizing its premium electric vehicle lineup in the South Asian market.
Where this fits into BMW's local production footprint can be traced back to the Chennai facility's history. Since its establishment in 2008, the plant has manufactured models including the 3 Series, 5 Series, X5, and X7. In the electric vehicle segment, the factory has already achieved local production of the iX1 and the long-wheelbase i5. The i7 represents the third fully-electric model to be assembled at this site, which has a maximum single-shift annual capacity of 17,500 units. Some components for the locally-produced models achieve a localization rate of up to 50%.
The 2027 i7 features BMW's latest OS X infotainment system, along with premium amenities such as a rear-seat floating theater screen, air suspension, and rear-wheel steering. The dual-motor all-wheel-drive system delivers robust performance befitting a flagship model.
Why BMW is pursuing this strategy is rooted in economics and market positioning. The locally-assembled i7 50 xDrive is priced at 19.5 million Indian rupees, equivalent to approximately 1.372 million yuan, matching the price of the petrol-powered 740 M Sport. However, the top-tier performance variant, the i7 M70 xDrive, remains available solely as a fully imported German model, priced at 26.5 million Indian rupees, or about 1.86 million yuan. India imposes hefty import tariffs of 60% to 70% on fully-built vehicles, making local assembly an effective way to reduce costs and offer a more competitive price point.
By producing the i7 locally, BMW is lowering the entry threshold for its flagship electric sedan, positioning it to compete directly with rivals such as the Mercedes-Benz EQS and Audi e-tron GT in India's rapidly expanding high-end EV market. This strategic shift signals that BMW no longer views India merely as an assembly hub for entry-level vehicles but as a key growth market for luxury electric mobility over the long term.
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