BMW has already implemented three price increases this year. The cumulative increase since the beginning of last year has been accompanied by a deterioration of the rupee against relevant currencies of about 18%, he said.
The potential hike comes even as BMW continues to see strong demand in India. Brar said the company is on track to cross 20,000 vehicle sales this year.
Brar said BMW is growing at a strong double-digit pace, while the non-BMW portion of the luxury market is declining. He attributed the company’s performance to new product introductions and electrification.
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BMW launched the new 7 Series range in India, with both the BMW 740 M Sport and the locally produced BMW i7 priced at Rs 1.95 crore (ex-showroom). The BMW i7 M70 xDrive, available as a completely built-up unit, is priced at Rs 2.65 crore.
Electric vehicles accounted for 26% of BMW’s sales in the first half of the year, up from 21% last year. Brar expects the share to cross 30% in the second half and said it could reach 35-40% next year.
BMW has been expanding local production of electric vehicles, with the X1 electric, i5 and i7 now assembled in India. Around 95% of the company’s sales are locally produced, with imports accounting for roughly 5%, Brar said.
The company is also betting on India’s growing luxury-car market despite higher vehicle prices. Brar said customers in the luxury segment are willing to pay more when they see the right products and features.
“In luxury, if you give the good right product, customers don't mind, you know, coming to you even if it becomes more expensive,” he said.
India has become BMW’s fastest-growing market globally this year and has moved into the company’s top 20 markets, with the next target being the top 15, said Brar.
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