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BMW Group India has announced a price increase of up to 5% across its BMW and MINI product range effective from 1 January 2015. While not elaborating on the reasons behind the hike despite a global softening of raw material prices, BMW is the first of three luxury car makers that have decided to increase prices.
Philipp von Sahr, President, BMW Group India said, “The success of BMW Group India has always been built on long-term thinking and responsible action. We want to maintain sustainable leadership in the Indian market with a strong brand and an exceptional model range with unbeatable product substance."
The German company, which is struggling against the onslaught of Mercedes-Benz and Audi both of which are flush with a bevy of products, had announced a similar increase in the same period last year.
"With the price increase, the BMW Group will maintain its premium positioning in the Indian luxury car segment,” von Sahr added.
All the three companies are offering direct discounts or their dealers are doing so on their range to shore up volumes. BMW is trailing in the third position in the luxury car market after Mercedes-Benz and Audi.
Audi announced yesterday that it will launch 10 new models in the coming year to maintain its leadership position in India.
