BMW Price Hike: Navigating Forex Fluctuations Amid Rupee's Slide

BMW plans to raise vehicle prices due to the weakened rupee against the euro, impacting pricing and profitability. The luxury carmaker previously announced a price increase due to forex fluctuations and supply chain issues. Pressure mounts as the rupee's exchange rate drops, affecting the auto industry's bottom line.

German luxury carmaker BMW is set to raise its vehicle prices from next month as the company looks to counterbalance the impact of a weakened rupee against the euro, according to President and CEO Hardeep Singh Brar.

Initially, the company had announced up to a 3% increase in prices from September 1, citing adverse effects of fluctuating foreign exchange rates and global supply chain challenges. In the Indian market, BMW offers a series of luxury cars and SUVs, including electric models, with prices starting from Rs 45.3 lakh for the 2 Series Gran Coupe and going up to Rs 2.54 crore for the XM.

Brar emphasized that the deterioration of the rupee against the euro—currently valued around 103 to 105 versus initial expectations of 93 to 95—has imposed considerable pressure on pricing strategies and profitability. This increase is separate from adjustments tied to new GST rates, purely driven by forex conditions. Market dynamics, particularly in currencies like the euro and dollar, have exacerbated the financial landscape, making sustaining existing price points increasingly challenging.

(With inputs from agencies.)