BMW is likely to increase prices of all models across the line up including the cars under the Mini brand. The price hike is expected to come into effect from August 15 and is expected to be around five per cent.
The hike is most likely due to the depreciating value of the Rupee and the impact that it has had on the economy. The most obvious reason is that BMW much like its ‘Big German three’ counterparts Audi and Mercedes-Benz imports its parts and this is hurting its profit as well as cost margins.
The hike is not one of surprise, as the measure has already been taken by mass market manufacturers like General Motors and Mahindra who manufacture their cars locally. Maruti on the other hand had earlier opted to outsource some of its parts production to local manufacturers but is also likely to up their prices in the near future.
Other manufacturers are expected to follow, but the current lethargic market makes the decision a dicey one for the manufacturers who are currently have their work cut out in terms of meeting their targets.
The approaching festive season is hoped to improve the current state and manufacturers are eyeing the period to introduce new and improved models in an effort to tap the possible bloom in the market.
Edit: BMW India has confirmed that it has hiked its prices by up to five per cent and this will be effective from August 15