OEMs are facing new challenges to improve the existing technologies and develop next-generation ones for the new mobility in shorter times. Reducing market responding time along with new complexities are paving the way for virtual simulation, which displaces physical tests and prototypes by virtually replicating product development, testing and manufacturing with simulations. Emmanuel Leroy, Executive Vice-President Industry Solutions at ESI Group, explains, “We enable our customers to drastically reduce every additional physical prototype by using our solutions. In the end, only one physical prototype is required to validate the whole concept. We envision that one day we may be able to virtually certify a product from end to end.” Excerpts:

Q) How did the Covid impact the software and services businesses of ESI Group?

The Covid pandemic has accelerated the need for more digitalisation within the industrial market. It has also somehow accelerated the readiness level of our customers and made solutions such as virtual prototyping even more relevant. Indeed, we enabled the continuity of our clients’ business. The use of virtual prototyping allowed them to continue designing, testing and prototyping their products. Our human-centric approach – one of ESI Group’s four outcome solutions – was particularly used by our customers to ensure the continuity of their businesses: using virtual reality to experience the product from home.

During pandemic times, we also provided our CFD (computational fluid dynamic) solutions to help investigating different scenarios to demonstrate the effect of occupant proximity, ventilation systems and contamination avoidance unique to each office and plant environment. ESI Group developed different virtual scenario, based on its facilities in India, to optimise the return to offices and on plant – especially on a car assembly line.

How the growing complexity of part process is influencing the virtual testing?

We notice that the automotive industry is facing more and more draconian regulations, disruptive technologies, intensifying competitions and shortening response time. Coupled with these, customers are getting more demanding on quality, reliability, safety and production deadlines in the business. Indeed, end users are no longer looking for products but for results (flight hours instead of engines, number of possible kilometres instead of electric car, etc.) and they seek for committed and responsible automakers to motivate their buys. At ESI Group, we have understood these preoccupations and we have defined four primary solutions answering our customers’ expectations.

The first one is the Pre-certification and Validation, enabling gains in performance and productivity. The purpose is double: meeting certification and validation requirements like crash, safety and fatigue issues in the first attempt and then increasing productivity with predictive models and process automation.

The second outcome is Smart Manufacturing, which enables to establish the right manufacturing processes to meet the performance indicators for industrial products and processes.

The Human-Centric Product and Process Validation, our third outcome, focuses on humans by implementing an operator-centric approach to ensure the efficiency of assembly, maintenance operation and the safety of human interactions.

The last one, Pre-experience, is the most advanced solution of ESI Group. Here, our customers and the operators do not look at the product itself, but virtually experience a product, component, subsystem or system under numerous conditions and environments.

Using these approaches, we identify industry challenges from the customer’s perspective and support them in achieving their results.

Finally, as products are getting more complex, one of our strengths is our end-to-end multi-material assembly solution with modelling of different materials (steel, aluminum, composite) and manufacturing processes, covering all the product development cycle.

What will be the growth drivers for the internal combustion engine-driven vehicles business?

Safety is essential and will remain a key driver in the future. Today, the active safety is gaining traction owing to the regulations and overall trends. There is an increasing demand for smart integrated safety, which caters to both active and passive what?

Alongside there are regulations on Co2. In Europe, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) Norm is challenging and will eventually be implemented in other countries. Regarding Co2 reduction, we focus part of our research and innovation around engine efficiency, aerodynamics and light-weighting, as we did with Bentley for instance.

OEMs are also looking to reduce the manufacturing cost and development time which are leading demand for virtual prototyping, digital twin and shifting OEMs’ investment from hardware to software. The end-to-end value and the digital continuity from the early design to the production is essential to achieve these goals.

OEMs are exploring possibilities to manufacture ICE vehicles and EVs on the same line. Being a solution provider for the smart manufacturing process, how do you see this as a challenge?

Some OEMs assemble EV and ICE vehicles on the same line and look for flexibility, while others use completely dissociated platforms. We, consequently, must find the right strategy regarding their requirements. The new upcoming challenges in CASE mobility manufacturing will bring even more complexities from components to manufacturing. We have to consider the complexity to train the operators: our virtual reality solutions are key here. We help our customers by providing training, on both ICE vehicles and EVs manufacturing processes to their team, even from different place around the world, gathered on the same interface. This solution gathers all stakeholders (from operators to QHSE officers and plant managers) around the same product. This immersive tool helps getting complementary feedbacks early on in the process.

Where do you find more competencies or comfortability — in the complete vehicle design or component design?

Clearly, we are positioning ourselves on the whole vehicle design as it gives the most significant benefit for the OEM and other customers. We are talking about an end-to-end value that we can demonstrate on full scale CAE demonstrators. When it comes to a standalone component, the complex interactions between components and environment are not well taken into account and can lead to reduced predictiveness. In this case, we come up with a holistic view of the problem itself. It is how we defined the four outcome solutions introduced earlier.

Do you think that virtual prototypes will, at a 100 percent, completely replace physical ones ?

Virtual prototypes are step by step replacing physical prototypes. Nevertheless, I think physical prototypes remain today essential to certify the product at the very end of the development phase. To give an example, in 2019 Renault succeeded a 5-star rating of its Clio 5 on the Euro NCAP safety certification test with a single physical prototype, the one needed for the consumer test. Virtual certification is a topic discussed within the automotive ecosystem, allowing to solely relying on the simulation from end to end. But we are not at that point right now.

Which is your largest market for automotive business?

The automotive industry is the most significant contributor to our total revenues. Today, Japan is the largest market for our automotive business. However, India has been an important market for ESI, and it has been growing quite well over the years.

Most of our engineering developments teams, for both our software and our platforms, are based in India.

What are the challenges in the business?

The increasing complexity I mentioned before is definitely a challenge, but it also brings opportunities to us. Our end-to-end multi-material, multiprocess solutions and chaining capabilities are key to overcome the challenges of the automobile market. Due to the ever growing content of electronics, system simulations and systems of systems techniques are improving as well. Our focus is to strengthen our collaboration with partners in the ecosystem to support the customers in solving their complex problems. (MT)

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BMW Group India has surged to the top of the luxury car retail charts in the first half of CY2026, overtaking its closest rival in a significant milestone for the company. The company sold a total of 9,075 vehicles  between January and June 2026, a 17 percent YoY increase.

In an interaction with Motoring Trends, Hardeep Brar, President & CEO, BMW Group India, attributed this success to a potent combination of new product launches and shifting consumer preferences towards electric vehicles amid global fuel price volatility.

“A couple of factors played very well for us. So firstly, we launched 11 new models and second thing, because of the West Asia crisis, an increase in fuel prices, a lot of narrative got shifted towards EVs; a lot of people are preferring to buy EVs versus diesel now,” said Brar.

The company’s aggressive product offensive has been central to its performance. With 11 models already launched in the H1 against the planned 25 product offensive for the year, BMW is capitalising on both traditional and emerging powertrains. Brar expressed strong confidence for the remainder of the year, noting an even more exciting pipeline ahead.

“So that gives us more confidence and EV story is only getting stronger with every passing day. I think we have reached an inflection point; people are really loving the EVs that we are introducing,” he remarked.

BMW’s EV penetration stands at an impressive 26% within the luxury segment, significantly ahead of the luxury average of around 14 percent and the broader industry’s 6 percent.

Brar highlighted that removing ‘BMW from the luxury equation drops the segment’s EV share to 8-9 percent, underscoring the brand’s leadership in electrification.’

Responding to the key factors driving EV adoption in the luxury space include near price parity between petrol and electric variants, ranges exceeding 500 km (with next-generation models targeting 800 km), and innovative customer assurances.

“EV customers have a lot of anxiety in terms of residual resale value. So, we have a program where we give an assured buyback to the customer that after three years you will get 60 percent of the value. And that is really playing and that is giving them confidence,” Brar explained.

MINI’s Remarkable Revival

On the other hand, the MINI brand has also delivered exceptional results. After selling approximately 730 units last year, BMW India launched the locally produced Countryman C last month at INR 4.75 million, passing on cost benefits to customers. The response was overwhelming, with 150 units sold in the first month alone.

“We are growing at almost 80 percent for MINI in H1 CY2026 and we want to double the volumes of 730 units last year and looking at 1,500 units for MINI in CY2026,” Brar stated.

Localisation, Dealer Dynamics and Manufacturing Focus

On localisation, the company maintains an average of 50 percent, slightly higher for internal combustion engine (ICE) models than EVs, with ongoing efforts to deepen content in battery technology as more local players emerge.

Addressing dealer profitability concerns around EVs, which typically require less aftersales maintenance, Brar noted strong upfront margins due to high demand. “Dealer don’t lose any money on selling the new car. Whereas petrol, diesels have oversupply and thus they are able to make far more money on the electric vehicle.”

He confirmed that discounting remains absent on EVs, with waiting periods stretching to three months owing to robust demand.

India’s rising importance in BMW’s global portfolio was a recurring theme. “India is one of the fastest growing markets for BMW across the globe. This year, India is at No. 1 in terms of growth globally,” Brar said.

The company has moved into the global top 20 markets, prompting increased focus from headquarters.

Going forward, BMW Group India plans to produce 20,000 cars this year, up from 18,000 units last year, with ongoing investments in production lines and AI for efficiency. A significant INR 4 billion investment is earmarked for the retail network across CY2025–2027.

The second half of 2026, will see BMW Group India introduce 14 additional launches, including electric vehicles, sedans and SUVs, maintaining strong momentum.

Sharing his views on the sedan segment Brar said that it continues to hold a robust 35 percent share of BMW’s sales, far above the industry’s 9-10 percent, reflecting enduring customer preference for the brand’s driving dynamics.

When asked about key challenges and opportunities, Brar outlined a balanced view.  “In terms of headwinds, forex is an issue because it is deteriorating. And with every one rupee deterioration, it impacts our bottom line by 1 percent.” He also flagged the risk of sudden shifts away from diesel potentially creating inventory challenges.

On the flip side, “The accelerating EV transition, rapidly growing demand from Tier-2 and Tier-3 cities, and continuous improvement in brand and customer experience becoming better with every passing day. So that I see as another very, very strong tailwind for us,” concluded Brar.

Despite broader manufacturing sector concerns around labour shortages, BMW reports no significant issues, thanks to proactive AI and automation initiatives.

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German luxury brand BMW Group India has reported its highest-ever sales for the first half (H1) of 2026, delivering 9,075 vehicles between January and June, a 17 percent YoY increase.

In Q2 CY2026, the company delivered 4,507 cars, representing 17 percent growth compared to the same period in 2025.

The group maintained a strong position in the luxury electric vehicle (EV) segment, delivering 2,359 EVs during the first half, marking a 78 percent increase, with these EVs now accounting for 26 percent of its total sales.

The company also saw significant demand for long-wheelbase models, which recorded a 24 percent increase and made up 52 percent of total sales. Sports Activity Vehicles (SAVs) contributed 65 percent to total volumes, growing by 35 percent.

On the other hand, MINI recorded 504 deliveries, a 70 percent increase, while BMW Motorrad delivered 2,327 motorcycles during the same period.

Hardeep Singh Brar, President and CEO, BMW Group India, said, “BMW Group India has delivered its highest-ever sales performance in the first half of 2026. We have delivered 9,075 cars, but beyond this impressive number, what we are really focused on is to continue our steady double-digit growth in an otherwise challenging environment. The +17 percent growth is a clear reflection of the deep trust our customers place in our brands. Our decisive hold on electric mobility has solidified BMW Group India as the number one choice in luxury EV segment. With a phenomenal 78 percent growth, every fourth car we sell today is an EV. Furthermore, our customer-centric product strategy continues to pay off, driven by a substantial surge in demand for our executive long wheelbase models and dynamic sports activity vehicles. Building on the thrill of our new launches, we have planned 14 more exciting products across all three brands before year end. We will drive this performance to the next level with a luxury experience that is unparalleled in the segment and matches evolving customer desires. With the commitment of our dedicated team and dealer partners, we are confident of driving the momentum and rewriting success stories for the rest of the year.”

In H1 CY2026, BMW Group India has already launched 11 products and plans 14 additional launches by the end of the year. The company’s retail network currently stands at 100 touchpoints across 40 cities, with plans to open 19 more outlets in 18 cities throughout 2026.

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Vimag Labs has secured its fifth patent in India, marking a significant milestone for the company’s intellectual property holdings. The newly granted patent, titled ‘A Robust Rotating Transformer Excited Synchronous Motor and Its Control’, protects the fundamental design of the firm’s proprietary Virtual Magnet Synchronous Motor (VMSM) platform. This latest development strengthens a portfolio that now includes 5 granted patents, 10 pending applications and 15 filed trademarks across multiple technological domains.

The patented VMSM technology departs from conventional permanent magnet synchronous motors by eliminating fixed rare-earth magnets from the rotor. Instead, it employs power electronics and advanced control algorithms to generate and regulate its magnetic field in real time. This brushless, slip-ring-free design delivers performance comparable to, or better than, traditional magnet-based solutions while removing the dependency on physical magnetic materials.

With active pilot projects already underway alongside established two-wheeler and passenger car manufacturers, Vimag Labs is positioning itself for broader commercial adoption. Expansion strategies target light commercial vehicles, heavy commercial trucks and high-power industrial systems ranging from 200 kilowatts to 600 kilowatts, with additional research directed towards robotics, defence applications and cooling systems. The patented architecture provides original equipment manufacturers with reduced motor costs and insulation from supply chain vulnerabilities associated with rare-earth magnets, predominantly sourced from China.

Recent financial backing includes a USD 5 million Series A round led by Accel, with participation from Chakra Growth Fund and Thinkuvate. A manufacturing memorandum of understanding has also been signed with Jendamark Private Limited to facilitate production scaling. For India, the homegrown motor technology aligns directly with the Make in India and Atmanirbhar Bharat initiatives, promoting indigenous development of critical electric propulsion systems.

Manish Seth, Co-Founder and CEO, Vimag Labs, said, “This patent is the outcome of over 87,600 engineering hours. It strengthens every dimension of our commercial roadmap- OEM partnerships, licensing, manufacturing scale-up and future growth. Our long-term vision is to build scalable, software-driven, magnet-free motor systems for global electrification. This innovation strengthens India’s deep-tech base across electric mobility, power electronics, robotics, defence and clean-energy systems.”

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Primus Partners, a management consultancy organisation, has announced the launch of a Global Capability Hub in Gurugram, transitioning from its previous advisory role to provide end-to-end Build & Operate services. The platform assists companies with strategy, location selection, operations and talent acquisition.

As the first milestone for this platform, Primus Partners has established a technology-focused GCC for German automotive supplier Linde-Wiemann. The centre, based in Gurugram, will support global operations across ERP, technology, finance and supply chain functions, with plans to expand into engineering and design.

The company states that Gurugram is increasingly attracting multinational enterprises for Global Capability Centre (GCC) investments, supported by the Haryana Global Capability Centres Policy 2026.

The region is emerging as a competitor to traditional hubs like Bengaluru, Hyderabad and Pune due to its access to talent, infrastructure and proximity to the National Capital Region.

Nilaya Varma, Global CEO, Primus Partners, said, "India's GCC story is entering an exciting new phase. While traditional destinations will continue to grow, the next wave of investments will increasingly be driven by locations that combine exceptional talent, strong industry ecosystems, world-class infrastructure and progressive policy support. Haryana, and Gurugram in particular, has all the ingredients to become one of India's leading GCC destinations. Over the years, we have partnered with multinational enterprises on their GCC strategy and advisory requirements. Today, we are taking the next step by helping them build, operate and scale these centres from India. Our engagement with Linde-Wiemann is an important milestone in that journey and reflects the growing confidence global enterprises have in Haryana as a strategic destination for future-ready Global Capability Centres."

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