[TusharK]

BMW and Mini are set to hike prices of their products by upto 3% from November 1, 2020. According to the company, the prices are being increased because of rising costs and depreciating currency.



Models like the 3 Series, 3 Series Gran Turismo, 5 Series, 6 Series Gran Turismo, 7 Series and SUVs like the X1, X3, X4, X5 and X7 are built locally. BMW is now gearing up to introduce the 2 Series Gran Coupe on October 15, 2020. It will also be produced locally.

Out of all the Mini models available in India, the Mini Countryman is the only model that is built locally. Cars like the Mini 3-door, Mini 5-door, Convertible, Clubman and the Mini John Cooper Works are imported as completely built units (CBU).

Prices of Mercedes-Benz cars have also gone up by 2% from October 2020.

[RSR]

"Depreciating currency"

If manufacturers want to hike prices, they are free do so by all means. They should just stop providing ridiculous reasons copied from their old press releases.

The Indian rupee extended gains and rose to a five-month high (link) level against the US dollar on Tuesday. The USD/INR hit a level of 74.16 intraday, last seen on March 18, 2020.

That was in late August. Now, it has made further gains:

[landcruiser123]

I'm guessing this is a scheme to attract many buyers who are on the fence. Come December, I'm sure we'll see year end discounts to follow.

[ajmat]

Originally Posted by landcruiser123

I'm guessing this is a scheme to attract many buyers who are on the fence. Come December, I'm sure we'll see year end discounts to follow.

I remember speaking to a former VP of Honda India, he mentioned that the Indian public go into a being frenzy when there is a fear of price rises. Even after a price rise, there might be a lull then it is business as usual.

[Turbanator]

Originally Posted by RSR

"Depreciating currency"

Most German companies will Import in "Euros" which has appreciated from around 75 Rs to over 85 Rs, so it's a fact that they are under pressure like any other EU country. Usually, we have seen price increases at least twice in a Year from Toyota and Germans, but this Year because of Covid, most companies continued with old prices despite higher exchange rates and Euro-6 changes.

Discounts are now part of their strategy, I guess, but these will be in some range as most of these companies are producing only what they can sell. Unlike past, they are now keeping most stock with themselves instead of pushing to dealers. This ensures that liquidity of dealer or the company is not affected and the stocks at factory are available to wider audience, across India and not struck up with a particular dealer. But this may change at Year end which is usually accounting Year for most MNC and they decide to let their inventories go.