BMW mulls hike in Jan to offset rupee impact against euro
image for illustrative purpose
Jaisalmer: German luxury carmaker BMW is looking to hike vehicle prices from next month as it aims to offset the impact of the weakened rupee against the euro, company’s President and CEO Hardeep Singh Brar said on Thursday.
The company had earlier announced to increase prices by up to 3 per cent from September 1 this year, citing the adverse impact of continued forex fluctuation and global supply chain dynamics.
BMW currently sells a range of luxury cars and SUVs, including electric vehicles, starting with the 2 Series Gran Coupe priced at Rs45.3 lakh and the XM tagged at Rs2.54 crore, in the Indian market.
“Forex fluctuation is a big dampener. We were looking at somewhere about 93 to 95 (rupee against euro) this year, but it is actually around 103 to 105, so it’s about 10 per cent deterioration versus our expectation. So that puts a lot of pressure on pricing and profitability,” Brar told PTI.
He noted that the company was not considering raising prices with the new GST rates coming into effect, but the weakening of the rupee has put a lot of pressure on the profitability.
