German luxury car maker BMW group said on Monday it will increase prices of its products across models, including the Mini, by up to 5 per cent amid higher import costs due to the declining rupee.
BMW Group India is announcing a price increase of up to 5 per cent across the BMW and Mini product range effective August 15, 2013, according to a company statement.
"We are making price decisions with all due care and consideration, ensuring that they pay off in the long run," BMW Group India President Philipp von Sahr said.
While the company did not specify the reasons for the price hike, industry experts have pointed out that import costs have gone up due to the falling rupee.
At present, BMW sells a range of vehicles in India, including sedans 3, 5, 6 and 7 Series, along with SUVs X1, X3, X5 and sports car M Series, which are priced between Rs 28.6 lakh (Rs 2.86 million) and Rs 1.73 crore (Rs 17.3 million).
The company's luxury compact car, the Mini series, is currently available between Rs 26.6 lakh (Rs 2.66 million) and Rs 37.50 lakh (Rs 3.75 million).
The company said the price hike is part of its strategy of "following a path of sustainable growth." Mercedes-Benz India said it may also increase prices on account of the rupee's decline.
"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," Mercedes-Benz India Managing Director and CEO Eberhard Kern said.
German rival Audi hiked prices across models in India by up to 4 per cent, a maximum of Rs 442,000 on its R8 model, with effect from July 15 to offset the impact of rupee depreciation and rise in input costs.