BMW Group India is evaluating a further increase in vehicle prices, potentially as soon as next month, citing persistent pressure from currency depreciation and rising commodity costs. Hardeep Singh Brar, President and CEO of BMW Group India, confirmed that these factors continue to squeeze the luxury carmaker's margins.
According to Brar, BMW has already implemented three price increases this year, contributing to a cumulative hike of approximately 4 to 5 percent in 2026. He highlighted that the Indian Rupee has depreciated by around 18 percent against relevant currencies since early last year, significantly impacting import costs for components and completely built-up units.
Strong Demand Despite Price Pressures
Despite the successive price adjustments, BMW is experiencing robust demand in the Indian market. Brar stated that the company is on track to surpass 20,000 vehicle sales this year, demonstrating strong double-digit growth. This performance contrasts with a reported decline in the non-BMW segment of the luxury market.
The company attributes its success to a strategy focused on new product introductions and an aggressive push towards electrification. BMW recently launched the new 7 Series range in India, including the locally produced electric BMW i7, both priced at Rs 1.95 crore (ex-showroom).
Electrification and Local Production Drive Growth
Electrification is playing a crucial role in BMW's India strategy. Electric vehicles accounted for 26 percent of the company's sales in the first half of the year, an increase from 21 percent last year. Brar anticipates this share will exceed 30 percent in the second half of the year and potentially reach 35-40 percent by next year.
BMW has expanded its local production of electric vehicles, with models like the X1 electric, i5, and i7 now assembled in India. Currently, approximately 95 percent of BMW's sales in India come from locally produced vehicles, with imports making up the remaining 5 percent.
India has emerged as BMW's fastest-growing market globally this year, moving into the company's top 20 markets worldwide. The next strategic target is to enter the top 15. Brar emphasized that customers in the luxury segment are willing to invest more when presented with desirable products and features, suggesting that the brand's premium offerings justify the higher prices.