German luxury automobile manufacturer BMW’s Indian arm, BMW India has announced a price hike across its product portfolio including the Mini range of cars by up to 5 percent. The move by the carmaker is seen as a step taken to offset the high import costs and the depreciation of the Indian rupee.
The price hike by the automaker will come into effect from August 15, 2013. According to Mr. Philipp von Sahr President BMW Group India, the carmaker has taken the decision after due thought and consideration and with the expectation that it will pay off in the long term.
The carmaker states the price hike to be a part of its strategy of “following a path of sustainable growth.”
Following BMW India’s decision to hike prices, other players in the Indian luxury car segment such as Mercedes Benz are expected to follow suit. Audi India has already implemented a price hike with effect from July 15, 2013 on the same grounds.
The depreciation of the Indian rupee is a concern for the automakers as it is directly causing the import costs to increase, thus increasing the production costs of the automobiles.