BMW to hike car prices from August 15

After Audi India increased prices by 4 per cent across its model range, BMW Group India are following suite. The Group has announced a price hike of up to 5 per cent effective from August 15, 2013. Related: Audi announces price hike on India range

This could translate into a price rise of about Rs 1.30 lakh on the X1 to Rs 4 lakh on the 7-Series flagship sedan. The MINI brand, which is owned by BMW, too, will see prices shoot up by Rs 1.25 lakh to Rs 1.5 lakh at least. Earlier last month, Audi had increased the price of the Q5 SUV by Rs 1.52 lakh and the Audi R8 by about Rs 4.42 lakh.

For those looking to avoid the price hike and purchase a BMW or a MINI before August 15, 2013, BMW Financial Services will offer a range of customised financing solutions. It will also offer BMW Lease for individuals and corporate customers along with insurance solutions through its cooperation partner in India.

Although other carmakers which cater to the masses have seen declining sales in the first half of 2013 and are likely to face low demand in the recent future too, luxury carmakers are yet to feel the heat of the slowdown. New product launches has kept the boat afloat and helped fuel demand.

Philipp von Sahr, President, BMW Group India said, “Following a path of sustainable growth, BMW Group India wants to maintain sustainable leadership in the Indian market with a strong brand and an exceptional model range with unbeatable product substance. The success of BMW Group India has always been built on long-term thinking and responsible action. We are making price decisions with all due care and consideration ensuring that they pay off in the long run. BMW Group India is committed to customers and is doing its best to ensure that the customers continue to enjoy Sheer Driving Pleasure.”

According to a report in the Economic Times, Mercedes-Benz India, too, is contemplating a price rise. Eberhard Kern, MD& CEO, Mercedes-Benz India, said, "The weakening of the rupee is a concern and we have been monitoring the situation closely. However, we have not yet decided on a timeline or a quantum for increasing the prices, but it looks inevitable."